Find the future value of the annuity Round your answer to th

Find the future value of the annuity. Round your answer to the nearest cent. The future value of the annuity is

Solution

Given,

(P)Principal =$2735

(R)Rate =5.6%

(NT)Time = 2 years

Formula Amount = A = P (1 + r/n) ^(nt)

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

Substituting the values in the above formula we get =

Amount = 2735 [ 1 + 5.6/100] ²

^{= 2735 (} 1.115136)

=3049.89696 is the required Amount