Question

find the value of the annuity a1= $3000 I=0.05 n=20 round to the nearest cent

Answer 1

is a1 the payment?

Answer 2

yes

Answer 3

if im reading the rest correctly, this forms a geometric sum as
\[a_1\frac{1-(I)^n}{1-I}\]

Answer 4

Sn=a1((1+I)^n-1/ I)

Answer 5

so you want a the present value of it?

Answer 6

im assuming yes. it says find the value of the annunity

Answer 7

any options by chance?

Answer 8

the total payments would rake in 99197.90 over the course of 20 periods

99197.90 amounts to the same thing as 94474.20 compounded at .05 for 20 periods

Answer 9

lol, i divided by 1.05 indtead of 1.05^(20)

Answer 10

99197.90 is abt 37386.65 (1.05)^(20)

Answer 11

that makes sense