Question

Hello I'm having some troubles on this math problem on my homework can you please help me

Answer 1

In order to solve this, we have to use the formula of the future value of an annuity with compounded interest given by the following expression:

`FV=P(((1+(r)/(n))^(nt)-1)/((r)/(n)))`

Where P is the periodic payment, r is the rate of interest. n is the number of times the interest is compound a year and t the year, by replacing 310 for P, 0.07(7%) for r, 4 for n, and 26 for t, we get:

`FV=310(((1+0.07\/4)^(4*26)-1)/((0.07)/(4)))=89908.22`

Then, the total value of the annuity in 26 years will be $89908.22