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dsp73
3 years ago
9

Find the interest earned and the future value of an annuity with annual payments of $1,400 for 18 years into an account that pay

s 4% interest per year.
Mathematics
1 answer:
o-na [289]3 years ago
5 0

Answer:

interest earned= 1436.143

the future value of an annuity= 2836.143

Step-by-step explanation:

Given Data:

Interest rate= 4%

time,t = 18 years

Annual payment, P= 1400

At the end of 18 years, final investment A= ?

As per the interest formula for interest

A= P(1+r)t

Putting the values in above equation

= 1400(1+0.04)^18

= 2836.143

Interest earned = A-P

                           = 2836.143-1400

                          = 1436.143 !

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