True/False
Present Value of 1 Future Value of 1
Present Value of an Annuity of 1
Future Value of an Annuity of 1
With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the end of the sixth year if the annual rate of interest is 10%.
7.7156 is the FV factor on the Future Value of an Annuity table; n = 6; i = 10%
Future Value of an Annuity = Annuity * FV Factor
Future Value of an Annuity = $5,000 * 7.7156 = $38,578
Correct Answer:
Verified
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