Question

Determine the FUTURE VALUE of the annuity: $4,000
deposited semiannually at 5.8% for 10 years.

Answer 1

The future value of the annuity is $44,285.10.

Step-by-step explanation:

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

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

Where:

FV = future value

P = periodic payment

r = interest rate per period

n = number of periods

Plugging in the values from the question, we have:

FV = 4000((1+0.058)^20 - 1)/0.058

FV = $44,285.10