Jerry deposits $5,000 at the end of each year in an account earning 2.25% interest, compounded annually. What is the future value of this annuity after 5 years of investing? (1 point)
a
$13,075.30
b
$26,150.60
c
$25,226.01
d
$52,301.20

Question

Jerry deposits $5,000 at the end of each year in an account earning 2.25% interest, compounded annually. What is the future value of this annuity after 5 years of investing? (1 point)
 a
$13,075.30
 b
$26,150.60
 c
$25,226.01
 d
$52,301.20

Mercury · Answer

A = P(1 + r)^t for annually compounding interest, where A = the final amount, P = the principal (5,000), r is the interest rate as a decimal (0.025) and t is time (5 years). plug in the appropriate values and evaluate A