What is the accumulated value of 10 annual deposits of $1200 immediately after the 10^th deposit,if j₄ = 10%?

Question

Quizplus · Accepted Answer

Using the formula for the future value of an annuity:

FV = Pmt((1 + r)^n - 1)/r

Where:
FV = future value
Pmt = annual payment
r = interest rate per period
n = number of periods

We have:
Pmt = 1200
r = 10%
n = 10

FV = 1200((1 + 0.1)^10 - 1)/0.1
FV = $19,478.09

Therefore, the accumulated value of the 10 annual deposits is $19,478.09. The best choice is (A).

What Is the Accumulated Value of 10 Annual Deposits of $1200