Question

What is the future value of 20 periodic payments of $2,000 each made at the beginning of each period and compounded at 9%? (Round answer to O decimal places, e.g. 458,581.) Future value $

Answer 1

Periodic payment = $2,000
Number of payments = 20
Interest rate = 9%

Future value = $2,000*1.09^20 + $2,000*1.09^19 + … + $2,000*1.09^2 + $2,000*1.09
Future value = $2,000 * 1.09 * (1.09^20 - 1) / 0.09
Future value = $2,000 * 55.764530
Future value = $111,529