Question

Can someone please help me solve these problems I’m struggling and it’s due tonight

Answer 1

The future value of given annuity is $5957.95.

Given that, an annuity = $1100, time period 5 years, rate of interest =4%.

What is the future value?

The future value simple interest formula is the addition of the principal amount that we have in the beginning and the interest earned on that principal amount after the completion of the period.

Future value = $Annuity\times(\frac{(1+r)^n-1}{r} )$.

1) Now, future value = $1100\times(\frac{(1+0.04)^5-1}{0.04} )$

= $1100\times(\frac{(1.04)^5-1}{0.04} )$

= $5957.95

2) Future value = $25000, time period= 4 years rate of interest = 12%, compounded monthly.

Now, $25000=Annuity\times(\frac{(1+0.12)^{12\times4}-1}{0.12} )$

⇒ 25000= Annuity × 1911.58

⇒ Annuity = 25000/1911.58

⇒ Annuity = $13.08

Therefore, the future value of given annuity is $5957.95.

To learn more about the future value visit:

brainly.com/question/14860893.

#SPJ1