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ValentinkaMS [17]
3 years ago
13

Calculate the final amount of a 20-year, long term savings plan if a payment of $2000 is made at the end of every year. Interest

is 8.5% compounded annually.
Mathematics
1 answer:
Andrej [43]3 years ago
6 0
Hi there
The formula of the future value of annuity ordinary is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value?
PMT payment per year 2000
R interest rate 0.085
N time 20 years

Fv=2,000×(((1+0.085)^(20)−1)
÷(0.085))=96,754.03

Hope it helps
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