If the current rate of interest is 8%, then the future value (FV) of an investment that pays $1000 per year and lasts 20 years is closest to:

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula FV = P * [(1 + r)^n - 1] / r, where P is the annual payment, r is the interest rate, and n is the number of periods. Plugging in the values: FV = 1000 * [(1 + 0.08)^20 - 1] / 0.08, which is approximately $45,762.

If the Current Rate of Interest Is 8%, Then the Future