Question

An annuity pays $49 per year for 13 years. What is the future value(FV) of this...

An annuity pays $49 per year for 13 years. What is the future value(FV) of this annuity at the end of those 13 years, given that the discount rate is 8%

a. $631.96

b. $1,474.58

c. $1,053.27

d. $1,263.92

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Answer #1

Answer: Option c is correct

After entering the given values in excel, we get the value as $1053.27

8% 1 Time 2 Interest 3 Present value 4 Payment 5 Future value $1,053.27) 6 Formula used: FV(V2,V1,V4,V3) 49

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