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Mama L [17]
2 years ago
8

A service contract for a video projection system costs $80 a year. You expect to use the system for four years. Instead of buyin

g the service contract, what would be the future value of these annual amounts after four years if you earn 2 percent on your savings
Business
1 answer:
bonufazy [111]2 years ago
5 0

Answer:

The future value at the end of year 4 will be $329.73

Explanation:

This can be found using the following annuity formula:

Future Value = Present Value * Annuity Factor (@2% for 4 Years)

Future Value = $80 * 4.121 =  $329.73

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