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What is the future value of a 5-year ordinary annuity with annual payments of $339, evaluated...

What is the future value of a 5-year ordinary annuity with annual payments of $339, evaluated at a 10 percent interest rate? (Do not include the dollar sign ($), and round your answer to 2 decimal places: for example, 536.34)

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Expert Solution

Future value of annuity = Annual payment*[{(1+r)^n - 1}/r]

= 339*[{(1+10%)^5 - 1}/0.1]

= $2,069.63

Hence, the answer is $2,069.63

jeff jeffy answered 2 years ago
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