What is the future value of $5,700 invested for 18 years at 9 percent compounded annually?
A)$26,397.74
B)$26,887.59
C)$28,511.15
D)$27,513.06
E)$27,520.22

Question

Quizplus · Accepted Answer

We can use the formula for future value of an annuity:

FV = P * [(1 + r)^n - 1] / r

Where:
P = payment (in this case, the initial investment) = $5,700
r = interest rate per period = 9% per year, compounded annually
n = number of periods = 18 years

Plugging in the values, we get:

FV = 5,700 * [(1 + 0.09)^18 - 1] / 0.09
FV = $26,887.59

Therefore, the correct answer is B.

What Is the Future Value of $5,700 Invested for 18