Question

To avoid doing all of the calculation what values do you need to know in figuring out the future value of an annuity?

Answer 1

To calculate the future value of an annuity, you need to know the interest rate, payment amount, and time period.

Step-by-step explanation:

To calculate the future value of an annuity, you need to know the following values:

1. Interest rate: This is the rate at which your investment will grow over time. For example, if you have a 5% interest rate, your investment will grow by 5% each year.
2. Payment amount: This is the amount of money you will contribute to the annuity at regular intervals. For example, if you contribute $100 every month, this would be your payment amount.
3. Time period: This is the length of time over which you will make payments and allow your investment to grow. For example, if you make payments for 10 years, the time period would be 10 years.

By knowing these values, you can use the future value of annuity formula to calculate the final value of your investment.