Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8% annually. The final value of Joe's investment at the end of the 20th year on this ordinary annuity is

Question

Quizplus · Accepted Answer

To find the final value of Joe's investment, we can use the formula for the future value of an ordinary annuity:
FV = PMT * ((1 + r)^n - 1) / r
where PMT is the yearly payment, r is the annual interest rate, and n is the number of periods. In this case, we have PMT = $9,000, r = 8%, and n = 20. Plugging in the numbers, we get:
FV = $9,000 * ((1 + 0.08)^20 - 1) / 0.08
FV = $411,857.68
Therefore, the best choice is C, with the final value of Joe's investment being $411,857.68.

Joe Sullivan Invests $9,000 at the End of Each Year