Question

Suppose you start an annuity where you invest $2,000 at the beginning of each year and 4% interest is paid at the end of the year. What is the value of the annuity at the end of 5 years, rounded to the nearest dollar? It is

Answer 1

Answer:

$10,400

Step-by-step explanation:

If 2,000 dollars are being invested at the beginning of each year and gets a 4% interest at the end that means 2,000*104%=$2,080

It also continues on for 5 years so 2,080*5=$10,400