Exercise of Ordinary Annuity Cash Flow (determining FV)
Joe Moran wishes to determine how much money he will have at the end of 5 years if he chooses the ordinary annuity. It represents deposits of $1,000 annually, at the end of each of the next 5 years, into a savings account paying 7% annual interest. How much will Joe Moran get at maturity? Post your answer by showing the calculation.
Answer:
$1000 * 5.75073901 = $5750.74
At the future value table: Future value of ordinary annuity for 5 years at seven percent = 5.75073901.
November 15th, 2009 at 3:29 pm
Answer:
$1000 * 5.75073901 = $5750.74
At the future value table: Future value of ordinary annuity for 5 years at seven percent = 5.75073901.
References :
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