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Find the future value of an ordinary annuity of $20 paid quarterly for 4 years, if...

Find the future value of an ordinary annuity of $20 paid quarterly for 4 years, if the interest rate is 9%, compounded quarterly. (Round your answer to the nearest cent.)
$

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Expert Solution

Period Per Quarter payment Cumulative amount Interest rate (9%/4) Amount
1 20                           20.00 2.25%       20.45
2 20                           40.45 2.25%       41.36
3 20                           61.36 2.25%       62.74
4 20                           82.74 2.25%       84.60
5 20                         104.60 2.25%     106.96
6 20                         126.96 2.25%     129.81
7 20                         149.81 2.25%     153.18
8 20                         173.18 2.25%     177.08
9 20                         197.08 2.25%     201.51
10 20                         221.51 2.25%     226.50
11 20                         246.50 2.25%     252.04
12 20                         272.04 2.25%     278.17
13 20                         298.17 2.25%     304.87
14 20                         324.87 2.25%     332.18
15 20                         352.18 2.25%     360.11
16 20                         380.11 2.25%     388.66
Futue value of annuity = $388.66

ekkarill92 answered 2 years ago
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