Question

Serena Medavoy will invest $5,890 a year for 17 years in a fund that will earn 12% annual interest. Click here to view factor tables If the first payment into the fund occurs today, what amount will be in the fund in 17 years

Answer 1

$287,924.84

Step-by-step explanation:

We are to calculate the future value of the annuity

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1

FV = Future value

P = Present value

R = interest rate

N = number of years

[(1.12)^17 - 1] / 0.12 = 48.883674

$5,890 x 48.883674 = $287,924.84