Question

at the beginning of each year for 14 years, sherry kardell invested $400 that earns 10% annually. what is the future value of sherry's account in 14 years?

Answer 1

Answer:

The future value is $12308.99

Step-by-step explanation:

Since Sherry Kardell is paying at the beginning of each year, therefore the annuity is due.

So,

$A = (1+r)\times P\times \left [ \frac{(1+r)^{n}-1}{r} \right ]$

$A = (1+0.1)\times400\times \left [ \frac{(1+0.1)^{14}-1}{0.1} \right ]$

$A = (1.1)\times400\times \left [ \frac{(1.1)^{14}-1}{0.1} \right ]$

$A = 440\times \left [ \frac{3.797-1}{0.1} \right ]$

$A = 440\times \left [ \frac{2.797}{0.1} \right ]$

$A =12308.99$

The future value is $12308.99

Answer 2

It will be 2400 because 4 times 1 equal to 4 them multiply it by 14 and I got 2400