What is the future value of 25 periodic payments of $5,440 each made at the beginning of each period and compounded at 8%? (Roun

Question

Leviafan [203]

4 years ago

5

What is the future value of 25 periodic payments of $5,440 each made at the beginning of each period and compounded at 8%? (Roun

d factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Business

1 answer:

artcher [175] · Answer 1 · 2021-12-24T05:06:48+03:00

Answer:

Explanation:

We would plug the following values in a financial calculator in order to compute the future value,

N = 25

I/Y = = r = 8

PMT = 5440

PV = 0

Fv = ??

FV = PMT x (1 + r )( $\frac{(1+r)^{N} -1}{r}$ )

https://www.calculator.net/finance-calculator.html?ctype=endamount&ctargetamountv=1000000&cyearsv=25&cstartingprinciplev=0&cinterestratev=8&ccontributeamountv=5440&ciadditionat1=beginning&printit=0&x=0&y=0

^ Using the financial calculator, FV = $429,512