What is the future value of a $500 annuity payment over seven (7) years if interest rates are nine (9) percent per year?

Group of answer choices

A. $3,761.67

B. $5,514.24

C. $4,600.22

D. $4,494.44

E. $6,200.91

Solutions

Expert Solution

Future value of annuity is calculated using following equation

Where,

FV is future value

P is annual payment

r is interest rate

n is number of years

FV = 4600.22

Therefore, the correct option is C.$4600.22

jeff jeffy answered 2 years ago

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