Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated.
Question
Find the future value of the ordinary annuity.
Interest is compounded annually, unless otherwise indicated.
Solution
Sure, I can help with that. However, I'll need more information to provide a complete answer. Specifically, I need:
- The amount of the regular payments in the annuity.
- The annual interest rate.
- The number of years the annuity will last.
The formula for the future value of an ordinary annuity is:
FV = P * [(1 + r)^n - 1] / r
Where: FV = future value of the annuity P = amount of the regular payments r = annual interest rate (in decimal form) n = number of years
Once I have the missing information, I can plug the values into the formula to find the future value of the annuity.
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