What's the future value of an investment of $1 a year for each of 4 years, at the end of the last year? Suppose the interest rate is 8%.
Multiple Choice
$5.87
$4.51
$3.25
$5.64
Future value of the annuity formula:
Where,
FVA = Future Value of Annuity
A = Annuity or yearly deposit
i = rate of interest in decimal form (i.e 8% = 0.08)
n = number of years
Therefore,
What's the future value of an investment of $1 a year for each of 4 years,...
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