Answered: The future value is $

Business

Accounting

The future value is $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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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]

Step by step

Solved in 2 steps

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