What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8 percent?
A) $3,312.10
B) $4,320.00
C) $4,506.11
D) $9,214.20

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the interest rate per period, and n is the number of periods. Plugging in the values ($1,000 for P, 0.08 for r, and 4 for n), the calculation gives us the future value of the annuity as $4,506.11.

What Is the Future Value of a $1,000 Annuity Payment