Find the future value of the annuity.
-A sequence of yearly payments of $5000 is invested at the end of each of 9 years at an interest rate of 2.1%, compounded annually. What is the total amount of the annuity after 9 years?
A) $48,471.18
B) $48,971.18
C) $49,971.18
D) $47,971.18

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula $FV = P \times \frac{(1 + r)^n - 1}{r}$, where $P$ is the payment amount, $r$ is the annual interest rate, and $n$ is the number of periods. Plugging in the given values: $P = \$5000$, $r = 0.021$, and $n = 9$, we get $FV = \$5000 \times \frac{(1 + 0.021)^9 - 1}{0.021}$, which calculates to approximately \$48,971.18.

Find the Future Value of the Annuity