Future Value of an Annuity What is the future value of an $800 annuity payment over 15 years if the interest rates are 6 percent?
A)$1,917.25
B)$7,002.99
C)$12,720.00
D)$18,620.78

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula FV = Pmt * [((1 + r)^n - 1) / r], where Pmt is the annuity payment, r is the interest rate per period, and n is the number of periods. Plugging in the values: FV = 800 * [((1 + 0.06)^15 - 1) / 0.06] = $18,620.78.

Future Value of an Annuity What Is the Future Value