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Intermediate Accounting: Reporting...
How do you compute the future value of an ordinary annuity?
Show the formula for the computation of future value of an ordinary annuity of $1.
Future Value: The future value is value of present amount compounded at an interest rate until a particular future date.
The future value of an ordinary annuity of $1 express the number of dollar will accrue from a sequence of end of the period cash flow that occurs over a period of time at a stated rate of interest.
Future value of an ordinary annuity can be computed from the following formula:
(or),
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