Asked Oct 20, 2019

find the value of the annuity. round to the nearest dollar. Periodic deposit 4000 Rate .055 time 40 years


Expert Answer

Step 1

You have asked for the value of the annuity, without actually specifying whether present value or the future value. 

I have assumed that you need the future value, and proceeded below with this assumption.

Step 2

For an annuity A with interest rate of r per period and n periods, the FV is as ...

F[(1 + r)" - 1

Image Transcriptionclose

A F[(1 + r)" - 1 FV _


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