Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate? Select one: a
What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate? Select one: a. $1,348.48 O b. $1.522.64 O c. 670.44 d. $1,169.56
here annual payment C = $200
rate r = 15%
time t =5 years
Future Value of annuity F = (C/r)*((1+r)^t-1)
=(200/0.15)*(1.15^5-1)
=1333.33*1.01
=$1348.48
Hence option a is correct here.
