Question



A service contract for a video projection system costs $155 a year. You expect to use the system for five years. Instead of b
Pred 1% T% 10% 11% 1 1000 1.200 100 1.000 1800 1.000 1.000 1.000 100 1.000 1a0 20 2.000 2.130 2110 smo 4.00 1. 1122 114 127 4
0 0
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Answer #1

Future Value of Annuity = Annual Amount*Future value annuity factor

= 155*FVAF(3%, 5 years)

= 155*5.309

= $822.895

i.e. $822.90

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