What is the future value of $845 a year for seven years at an interest rate of 11.3 percent?

Name: What is the future value of $845 a year for seven years at an interest rate of 11.3 percent?
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Question

Quizplus · Accepted Answer

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

FV = PMT * ((1 + r)^n - 1) / r

where PMT is the annual payment, r is the interest rate, and n is the number of years.

Plugging in the values:

FV = 845 * ((1 + 0.113)^7 - 1) / 0.113

FV = $8,343.51

Therefore, the correct answer is (C).

What Is the Future Value of $845 a Year for Seven