Question

I NEED HELP PLEASE!
find the value of the annuity.
a1 = $7000. I= 0.09. n=5
What is the future value of the annuity?
$ ___ (round to the nearest cent)

Answer 1

\[FV=PMT\frac{(1+i)^n-1}{i}\]
I'm guess your a1 is the monthly (periodic) payment? Just use the formula.

Answer 2

been on this question for over an hour, can not get the right answer

Answer 3

You might be typing it into your calculator the wrong way. What are you getting?

Answer 4

i just don't know how to do it, i am so confused

Answer 5

Substituting the given numbers into the formula, you get\[FV=7000\frac{(1+0.09)^5-1}{0.09}\]

Answer 6

would you then multiply 7000 times 0.09 to get the answer?

Answer 7

any tables?

Answer 8

tables?

Answer 9

if your doing a financial exam ... they give you tables to play with to determine the factor for a given annuity ....

Answer 10

if you are just spose to do this using recursion equation, you can build your own

Answer 11

the table in my book says:

FV-OA, future value of an ordinary annuity

-----------9%
| |
| |
5 ------5.98471

so that would be the factor, or multiplier for the FV

Answer 12

of course sith gave the formula they present at the top of the table :)