What is the future value of a series of 15 annual payments of $750 starting in one year and earning 7% compounded annually?
A) $6,831
B) $12,038
C) $17,673
D) $18,847
E) $32,848

Question

Quizplus · Accepted Answer

The future value of an annuity is calculated using the formula:FV = PMT * [(1 + r)^n - 1] / rwhere:PMT is the annual paymentr is the annual interest raten is the number of yearsIn this case, PMT = $750, r = 7%, and n = 15. Plugging these values into the formula, we get:FV = $750 * [(1 + 0.07)^15 - 1] / 0.07= $750 * [2.853 - 1] / 0.07= $750 * 1.853 / 0.07= $18,847Therefore, the future value of the annuity is $18,847.

What Is the Future Value of a Series of 15