Find the future value of the annuity.
-There are payments of $1000 at the end of each year for 15 years at 3% interest compounded annually
A) $18,598.91
B) $17,086.32
C) $5041.97
D) $51,932.25

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the annual interest rate, and n is the number of periods. Plugging in the values (P = $1000, r = 0.03, n = 15), we get FV = $1000 * [(1 + 0.03)^15 - 1] / 0.03, which calculates to approximately $18,598.91.

Find the Future Value of the Annuity