Mathematics
marciekayla
11

Calculate the final amount of a 20-year, long term savings plan if a payment of $2000 is made at the end of every year. Interest is 8.5% compounded annually.

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(1) Answers
Cibula685

Hi there The formula of the future value of annuity ordinary is Fv=pmt [(1+r)^(n)-1)÷r] Fv future value? PMT payment per year 2000 R interest rate 0.085 N time 20 years Fv=2,000×(((1+0.085)^(20)−1) ÷(0.085))=96,754.03 Hope it helps

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