Question

. What is the future value of 8 annual payments of $1,000 compounded at 5%? (1 point)

Answer 1

Answer:

FV = $ 9,549.10, or $ 9,549 rounded off.

Explanation:

Future Value (FV) = Present value (PV) x Future Value Annuity Factor (FVAF)

FV = PV x FVAF (5%, 8 years)

FV = 1,000 * 9.5491

FV = $ 9,549.10, or $ 9,549 rounded off.

Note:

Future Value Annuity Factor (FVAF) table given as follows:

In case of any doubt, please comment.