Question

Dan was getting rs. 100 for 5 years at an interest rate of 5%. Find the accumulated value of annuity at the end of 5 years

Answer 1

The future value of the annuity after the end of 5 years is $552.56.

Given that, r =5%= 0.05, 5 years  = 5 yearly payments, so n = 5, and P = $100.

What is the annuity formula?

The formula to find the annuity formula $FV=\frac{P \times ((1+r)^{n}-1 )}{r}$.

Now, $FV=\frac{100 \times ((1+0.05)^{5}-1 )}{0.05}$

⇒FV = 100 × 55.256

⇒FV = $552.56

Therefore, the future value of the annuity after the end of 5 years is $552.56.

To learn more about the annuity formula visit:

brainly.com/question/11691655.

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