Question

An annuity pays $53 per year for 17 years. What is the future value FV of this annuity at the end of those 17 years, given that the discount rate is 5%? OA. $1,917.36 OB. $1,643.45 O C. $1,369.54 OD. $821.72

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Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=$53[(1.05)^17-1]/0.05

=$53*25.84036636

which is equal to

=$1369.54(Approx).

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