Question

You just graduated and landed your first job in your new career.

Answer 1

Answer:

correct option is D). $454,513

Explanation:

given data

Annuity = $2000

rate = 7.5 % = 0.075

time period = 40 year

solution

we get here Future value of annuity that is express as

Future value of annuity = Annuity ×  $\frac{(1+r)^t -1}{r}$ ......................1

here r is rate and t is time period so now put value and we get

Future value of annuity = $2000 ×  $\frac{(1+0.075)^{40} -1}{0.075}$  

Future value of annuity =  $454513.03

so correct option is D). $454,513