Find the value of the annuity with the following characteristics.
-Payments of $1000 are made at the end of each year for 15 years at 9% interest compounded annually
A) $40,472.03
B) $3,713.03
C) $29,360.92
D) $26,019.19

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the interest rate, and n is the number of periods. Plugging in the values: P = $1000, r = 0.09, n = 15, the future value is approximately $29,360.92.

Find the Value of the Annuity with the Following Characteristics