An investment promises to pay $500 each year for 15 years. Calculate the future value of...

Question

Question

An investment promises to pay $500 each year for 15 years. Calculate the future value of this annuity under the following cir

Answer 1

Answer #1

USE FORMULA =FV on the excel.

if this data is put on graph where x axis is number of payments in one year and y axis shows future value of investment

17600 17ᏎᎾ0 172ᎾᎾ 17ᎾᎾᎾ . 168ᎾᎾ 166ᎾᎾ 16ᏎᎾᎾ . 162ᎾᎾ . 16ᎾᎾᎾ 158ᎾᎾ . [ •100 [ 100 200 300 . 400

This chart shows that as number of payment increases in a year, future value increases at a fast pace as investment will compound that much time.

Answer 2

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