Homework Answers
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
1.Future value=10,000[(1.08)^40-1]/0.08
=10,000*259.056519
=$2590565(Approx).
2.Future value=$10,000[(1.06)^40-1]/0.06
=$10,000*154.761966
=$1547620(Approx).
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