Round your answer to the nearest cent.
-Find the 12-year future value of an ordinary annuity with a contribution of $1000 per year into an account that pays 6% per year, compounded annually.
A) $33,536.61
B) $3163.83
C) $14,971.64
D) $16,869.94

Question

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: FV = P * [(1 + r)^n - 1] / r, where P is the annual payment ($1000), r is the annual interest rate (0.06), and n is the number of years (12). Plugging in these values gives FV = $1000 * [(1 + 0.06)^12 - 1] / 0.06 = $16,869.94.

Round Your Answer to the Nearest Cent