Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. $1000 invested annually for 14 years at 6% interest compounded annually

A. $18,882.14

B. $37,681.73

C. $3554.88

D. $21,015.07

Question

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.	$1000 invested annually for 14 years at 6% interest compounded annually

A. $18,882.14	

B. $37,681.73	

C. $3554.88	

D. $21,015.07

parthkohli · Answer

$\Large \color{purple}{\rightarrow Principal(1 + {rate \over 100})^{years} }$

parthkohli · Answer

This is the formula of compounded amount..

anonymous · Answer

so how much would it come out to bee .

anonymous · Answer

just plug into your formula and evaluate

anonymous · Answer

but whats the priinciple ?

anonymous · Answer

like how would i set it up becuase iv never learned this .

anonymous · Answer

i think1000 would be your principal

anonymous · Answer

sso it would be 1000(1+ what over 100 ? ) 14 ?

anonymous · Answer

21015.06593

rounded
21015.07

anonymous · Answer

I used this one instead http://www.annuityformulas.org/future-value-of-regular-payments.gif

anonymous · Answer

where i is rate in decimal not percent.  in other words .06 not 6%

anonymous · Answer

that was easieer (:

anonymous · Answer

RP is the regular payment

anonymous · Answer

n is number of years