Determine the future value in year 10 of $5,000 annual payments received in years 1, 3 and 5 and $4,000 annual payments in years 2, 4 and 6 given an interest rate of 5% compounded annually.
A) $36,250.25
B) 36,759.45
C) $37,305.78
D) $37,908.42
E) $38,818.68

Question

Quizplus · Accepted Answer

Each payment must be compounded to year 10. For $5,000 payments in years 1, 3, and 5, and $4,000 payments in years 2, 4, and 6, calculate the future value using the formula FV = PV * (1 + r)^n for each payment and sum them up.

Determine the Future Value in Year 10 of $5,000 Annual