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Find the future value of an annuity of $700 per year for 5 years if the interest rate is 14 per cent.

User Gnr
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1 Answer

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Final answer:

The future value of the annuity is $3,860.36.

Step-by-step explanation:

To find the future value of an annuity, we can use the formula:

Future Value = Payment × ((1 + Interest Rate)Number of Years - 1) / Interest Rate

In this case, the payment is $700, the interest rate is 14%, and the number of years is 5:

Future Value = 700 × ((1 + 0.14)5 - 1) / 0.14

Simplifying the expression gives:

Future Value = $3,860.36

User Frankenmint
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