Final answer:
To calculate the future value of $50,000 per year for 20 years, assuming a discount rate of 14%, you can use the future value formula for an annuity.
Step-by-step explanation:
To calculate the future value of $50,000 per year for 20 years, assuming a discount rate of 14%, we can use the future value formula for an annuity.
The formula for the future value of an annuity is:
FV = P * [((1 + r)^n) - 1] / r
Where:
- FV is the future value
- P is the payment each period
- r is the discount rate
- n is the number of periods
Using this formula, we can plug in the values from the question:
FV = $50,000 * [((1 + 0.14)^20) - 1] / 0.14
Calculating this equation will give you the future value of the annuity.