Find the value of the annuity and the interest. Round to the nearest dollar.AAP[(1+r)¹-1]rA=ntOA. $310; $690OB. $1,258; $258OC. $3,258; $2,258OD. $1,103; $103P=8Periodic Deposit: $100 at the end of each yearRate: 5% compounded annuallyTime: 10 years[(₁+1)nnt

Periodic Deposit = $100 Interest Rate = 5% Time Period = 10 YearsFuture Value = Periodic Deposit×1+Interest RateTime Period-1Interest RateA = P1+rt-1rFuture Value = $100×1+0.0510-10.05Future Value = $100×1.0510-10.05Future Value = $100×1.628894627-10.05Future Value = $100×0.6288946270.05Future Value = $62.88946270.05Future Value = $1,257.789254 or $1,258 Interest = Future Value- Total DepositInterest = $1,257.789254- $100×10Interest = $1,257.789254- $1,000Interest = $257.789254 or $258Option B. $1,258 , $258 is correct.

Business

Finance

Find the value of the annuity and the interest. Round to the nearest dollar. nt P A - A _ ² (¹+1)-1] () = = nt ( P[(1+r)¹-1] r Periodic Deposit: $100 at the end of each year Rate: 5% compounded annually Time: 10 years ||

Find the value of the annuity and the interest. Round to the nearest dollar. nt P A - A _ ² (¹+1)-1] () = = nt ( P[(1+r)¹-1] r Periodic Deposit: $100 at the end of each year Rate: 5% compounded annually Time: 10 years ||

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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