MINDTAP Q Search this n. 5 Quiz Submit Test for Grading Save MC.05.091 Question 4 of...

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Answer 1

Answer #1

Future value of Annuity = A [((1+r)ⁿ-1) / r]

Where

A - Annuity payment = 6200

r - rate per period = 5.2%

n - no. of periods = 3

Future value of Annuity = 6200* [(1.052^3-1) / .052]

= 6200* [(1.164252608-1) / .052]

= 6200*3.158704

= $19583.96

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Answer 2

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