Find the future value of the annuity Payments of 1000 at the

Find the future value of the annuity. Payments of $1000 at the end of each year for 12 years at 6% interest compounded annually solve A small start-up consult.ng company hopes to have 9 times the clientele it had the previous year for the next 5 years II the company just meets its targets each of the 5 years and it had 9 clients to begin with, how many clients does it have at the end of 5 years?

Solution

122) Here, i = 6% = 0.06 , n =12 years , P =1000

Future value of annuity = p * [ (1 + i)^n -1 / i ]

= 1000 * [ ( 1 + 0.06 ) ^12 -1 / 0.06]

= 16869.94