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

Question

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] · Answer 1 · 2022-05-12T09:07:16+03:00

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