Question

At age 51 Oscar set up a 401(k) where he plans to deposit $9000 at the beginning of each year until age 75 find the amount of the annuity if he invests in a stock fund that yields 4% compounded annually

A. $374,813.19
B. $351,743.40
C. $365,813.19
D. $395,542.20

Answer 1

Hi there
The formula of the future value of annuity due is
Fv=pmt [(1+r)^(n)-1)÷r]×(1+r)
Fv future value?
PMT payment 9000
R interest rate 0.04
N time 75−51=24 years
So
Fv=9,000×((((1+0.04)^(24)−1)
÷(0.04))×(1+0.04))
=365,813.17

It's c

Hope it helps