Homework Soursecalculate the future value of an annuity that pays 3500 annu
calculate the future value of an annuity that pays $3,500 annually at a rate of 4% for ten years
calculate the future value of an annuity that pays $3,500 annually at a rate of 4% for ten years
calculate the future value of an annuity that pays $3,500 annually at a rate of 4% for ten years
Solution
Future Value of annuity = Annuity x Future Value of annuity of 1 = $ 3,500 x 12.006107 = $ 42,021.37 Working: Future Value of annuity of 1 = (((1+i)^n)-1)/i Where, = (((1+0.04)^10)-1)/0.04 i 4% = 12.006107 n 10
