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i was wondering if anyone couod explain as to how in the second step, the 18 is not there
Future Value of an Annuity (PVA), Long-hand Method Example: $500 Payments for 18 years, Earning 6% Annually FVA = $500{[(1 +
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Answer #1

(1.06)18 is actually written as (1.06)^18 or (1.06)18,

If you put this in Excel =1.06^18, you will get 2.85

Or you can also calculator in a financial calculator by using the raise to the power function. Or in a regular calculator multiply 1.06 with itself 18 times.

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