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What is the future value of a five-year ordinary annuity of $1,000 per year if the...

What is the future value of a five-year ordinary annuity of $1,000 per year if the interest rate is 1.28%? Hint: solve for year 5.

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Expert Solution

Rate of Interest (RATE) = 1.28%; Tenure (NPER) = 5 years and the Annuity Payments (PMT) = $ 1000 per year

Future Value (FV) = FV9RATE,NPER,-PMT,PV,0) = (FV(1.28%,5,-1000,,) = $ 5129.65

Answer: $ 5129.65

jeff jeffy answered 2 years ago
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