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What is the future value of a 6-year ordinary annuity with annual payments of $200 evaluated at an 8 percent interest rate?

User Godisemo
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1 Answer

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Final answer:

The future value of the 6-year ordinary annuity is $1,366.85.

Step-by-step explanation:

The future value of a 6-year ordinary annuity with annual payments of $200 evaluated at an 8 percent interest rate can be calculated using the future value of an ordinary annuity formula:

Future Value = Payment * ((1 + Interest Rate)^Number of Periods - 1) / Interest Rate

Substituting the given values:

Future Value = $200 * ((1 + 0.08)^6 - 1) / 0.08 = $1,366.85

So, the future value of the annuity is $1,366.85.

User Daniel Messner
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