Question

Find the future value of an annuity of $1100 paid at the end of each year for 15 years, if interest is earned at a rate of 8%, compounded annually. (Round your answer to the nearest cent.)

Answer 1

Answer:

FV $29,867.33

Explanation:

We calculate with the formula for future value of an annuity

$C \times \frac{(1+r)^{time} -1}{rate} = FV$

C 1100 anual payment

time    15 years

rate     0.08 annual rate

$1100 \times \frac{(1+0.8)^{15} -1}{0.8} = FV$

FV $29,867.33

This is the value of the annuity 15 years into the future.

If we start his today on 2019 on 2034 we will get 29,867.33 dollars in the bank account