Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- Assuming an interest rate of 12 percent, an ordinary annuity of eight annual $30,000 payments will grow to

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
- Assuming an interest rate of 12 percent, an ordinary annuity of eight annual $30,000 payments will grow to

Quizplus · Accepted Answer

The future value of an ordinary annuity can be calculated using the future value of an annuity formula or table. At 12% interest for 8 years, the future value factor is approximately 13.299. Multiplying this factor by the annual payment of $30,000 gives $368,991.

Use the Present Value and Future Value Tables Included in Appendix