Freya plans to invest $3,200 a year for 25 years starting at the end of this year. How much will this investment be worth at the

Question

2 years ago

8

end of the 25 years if she earns an average annual rate of return of 8.2 percent

1 answer:

Dmitry [639] · Answer 1 · 2022-10-04T07:02:08+03:00

Answer:

$240,885.11

Explanation:

The formula to be used is = annual payment x annuity factor

Annuity factor = {[(1+r) ^N ] - 1} / r

R = interest rate = 8.2 percent

N = number of years = 25

[(1.082^25) - 1 ] / 0.082 = 75.276598

75.276598 x $3,200 = $240,885.11

I hope my answer helps you