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an ordinary annuity makes quarterly payments of $1,000. the annuity earns a 12 nnual return with quarterly compounding. the future value of this annuity after 10 quarters is

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The easiest way to solve this problem is to use a financial calculator or spreadsheet function. However, I can provide you with the formula to calculate the future value of an ordinary annuity.

The formula is:

FV = Pmt x [(1 + r)^n - 1] / r

Where FV is the future value, Pmt is the periodic payment, r is the interest rate per period, and n is the number of periods.

In this case, Pmt = $1,000, r = 12% / 4 = 3% per quarter, and n = 10 quarters.

Plugging these values into the formula, we get:

FV = $1,000 x [(1 + 3%)^10 - 1] / 3%
FV = $12,171.49

Therefore, the future value of this annuity after 10 quarters is $12,171.49.
User Samyukt Shah
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