For each of the following annuities, calculate the future value.
Future Value | Annual Payment | Years | Interest Rate |
---|---|---|---|
?????? | $1,730 | 10 | 10% |
?????? | 8,080 | 33 | 11 |
????? | 4,130 | 9 | 8 |
?????? | 8,890 | 28 | 12 |
1)
Future value = Annuity * [(1 + r)n - 1] / r
Future value = 1,730 * [(1 + 0.1)10 - 1] / 0.1
Future value = 1,730 * 15.937425
Future value = $27,571.74
2)
Future value = Annuity * [(1 + r)n - 1] / r
Future value = 8,080 * [(1 + 0.11)33 - 1] / 0.11
Future value = 8,080 * 275.529222
Future value = $2,226,276.12
3)
Future value = Annuity * [(1 + r)n - 1] / r
Future value = 4,130 * [(1 + 0.08)9 - 1] / 0.08
Future value = 4,130 * 12.487558
Future value = $51,573.61
4)
Future value = Annuity * [(1 + r)n - 1] / r
Future value = 8,890 * [(1 + 0.12)28 - 1] / 0.12
Future value = 8,890 * 190.698887
Future value = $1,695,313.11
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