How much will $1,000 invested at the end of each year grow to in 5 years, assuming an interest rate of 10% compounded annually EV of $1

Accounting Dec 02, 2020

How much will $1,000 invested at the end of each year grow to in 5 years, assuming an interest rate of 10% compounded annually EV of $1. EV. 1. EVA 51 and PVA of $. (Use appropriate factor(s) from the tables provided.) Multiple Choice $24.420 519.326 $20,000 $25,420

Expert Solution

$ 24,420

*Future Value of annuity = Annuity FVA = $ 4,000 * 6.105 = $ 24,420**

We can also calculate using a table

Year	Annuity	FVF @ 10%	Future Value
1	4,000	1.000	4,000
2	4,000	1.100	4,400
3	4,000	1.210	4,840
4	4,000	1.331	5,324
5	4,000	1.464	5,856
		6.105	24,420

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