If you invest $1,200 per year at the end of each year for 40 years at an 8% rate of return,you will have accumulated (Use time value table or financial calculator.)

Question

Quizplus · Accepted Answer

Using the formula for future value of an annuity:

FV = C × [(1 + r)n - 1] ÷ r

Where C is the annual contribution, r is the interest rate, and n is the number of years.

Plugging in the given values, we get:

FV = 1,200 × [(1 + 0.08)^40 - 1] ÷ 0.08
FV = 1,200 × 147.6235
FV = 177,147.2

Therefore, the accumulated value after 40 years is $310,862.

If You Invest $1,200 Per Year at the End of Each