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alekssr [168]
3 years ago
10

At age 51 Oscar set up a 401(k) where he plans to deposit $9000 at the beginning of each year until age 75 find the amount of th

e annuity if he invests in a stock fund that yields 4% compounded annually
A. $374,813.19
B. $351,743.40
C. $365,813.19
D. $395,542.20
Mathematics
1 answer:
Temka [501]3 years ago
6 0
Hi there
The formula of the future value of annuity due is
Fv=pmt [(1+r)^(n)-1)÷r]×(1+r)
Fv future value?
PMT payment 9000
R interest rate 0.04
N time 75−51=24 years
So
Fv=9,000×((((1+0.04)^(24)−1)
÷(0.04))×(1+0.04))
=365,813.17

It's c

Hope it helps
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