The future value is $
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 20E
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Question
Find the future value of an ordinary annuity of $900 paid at the end of each year for 2 years, if interest is earned at a rate of 4%, compounded annual.
The future value is $ (Round to 2 decimal places.)
Expert Solution
Step 1
Future value of Ordinary Annuity =
= payment per period * [(1 + Interest rate) n - 1) /interest rate]
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