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goldenfox [79]
3 years ago
5

Me Value of Money: Practice

Mathematics
1 answer:
Tatiana [17]3 years ago
3 0

Answer:

$3952.13

Step-by-step explanation:

Annuity amount = future value / annuity factor

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

FV = Future value = $75,000  

R = interest rate = 8%

N = number of years = 12

Annuity factor = [(1/08)^12 - 1 ] / 0.08 = 1.8977126

Annuity amount = $75,000 / 1.8977126 = $3952.13

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