Use the future value formula to find the indicated value. Round to three decimal places.
-n = 13; i = 0.04; PMT = $1000; FV = ?
A) $16,627.838
B) $18,292.371
C) $15,026.247
D) $41,627.144

Question

Quizplus · Accepted Answer

The future value (FV) of a series of payments (PMT) can be calculated using the formula FV = PMT * [(1 + i)^n - 1] / i, where n is the number of payments, i is the interest rate per period, and PMT is the payment amount per period. Plugging in the values given (n = 13, i = 0.04, PMT = $1000), we get FV = $1000 * [(1 + 0.04)^13 - 1] / 0.04, which calculates to approximately $16,627.838.

Use the Future Value Formula to Find the Indicated Value