Find the value of the annuity at the end of the indicated time period. The amount, frequency of deposits, annual interest rate, and time period are given. Do not round until the final answer. Then, round to the nearest cent.

Amount: $225; quarterly; 9%; 8 years.

Question

Find the value of the annuity at the end of the indicated time period. The amount, frequency of deposits, annual interest rate, and time period are given. Do not round until the final answer. Then, round to the nearest cent.

Amount: $225; quarterly; 9%; 8 years.

amistre64 · Answer

the net present value or the future value?

anonymous · Answer

future value

anonymous · Answer

A

$10,381.03
B

$10,869.74
C

$11,169.84
D

$16,469.85

amistre64 · Answer

the future value is just a normal compounding interest setup

amistre64 · Answer

$$B_t=B_o(1+\frac{r}{c})^{ct}+P\frac{1-(1+\frac{r}{c})^{ct}}{1-(1+\frac{r}{c})}$$

amistre64 · Answer

since Bo is 0, that amounts to the Payments only

amistre64 · Answer

http://www.wolframalpha.com/input/?i=225%281-%281%2B.09%2F4%29%5E%284*8%29%29%2F%281-%281%2B.09%2F4%29%29

anonymous · Answer

Thank you so much!!!

amistre64 · Answer

youre welcome