If you start making $90 monthly contributions today and continue them for ten years, what is their future value if the compounding rate is 6 percent APR? What is the present value of this annuity?
A) $14,794.14; $8,106.61
B) $14,794.14; $8,147.14
C) $14,822.89; $8,106.61
D) $14,822.89; $8,147.14

Question

Quizplus · Accepted Answer

The future value of the annuity is $14,794.14 and the present value is $8,106.61. The future value is calculated using the formula FV = PMT * (((1 + r)^n - 1) / r), where PMT is the monthly contribution, r is the annual interest rate, and n is the number of years. The present value is calculated using the formula PV = PMT * ((1 - (1 + r)^-n) / r), where PMT is the monthly contribution, r is the annual interest rate, and n is the number of years.

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