The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent compounded quarterly is
A) $17,549
B) $75,401
C) $93,049
D) $11,200

Question

Quizplus · Accepted Answer

The future value of an annuity is the sum of the present values of each payment, discounted at the given interest rate. In this case, we have an annuity of $1,000 each quarter for 10 years, deposited at 12 percent compounded quarterly. The future value of this annuity is $75,401.

The Future Value of an Annuity of $1,000 Each Quarter