Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.
-$\mathrm{PMT}=\$ 1000,7.9 \%$ interest compounded annually for 6 years
A) $\$ 5854.91$
B) $\$ 7317.45$
C) $\$ 19,975.68$
D) $\$ 1851.31$

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: $ FV = PMT \times \frac{(1 + r)^n - 1}{r} $. Here, $ PMT = 1000 $, $ r = 0.079 $, and $ n = 6 $. Plugging in these values gives $ FV = 1000 \times \frac{(1 + 0.079)^6 - 1}{0.079} \approx 7317.45 $.

Find the Future Value of the Ordinary Annuity PMT=$1000,7.9%\mathrm{PMT}=\$ 1000,7.9 \%PMT=$1000,7.9%

Find the Future Value of the Ordinary Annuity $\mathrm{PMT}=\$ 1000,7.9 \%$