Jenny Abel is investing $2,500 today and will do so at the beginning of another six years for a total of seven payments. Her investment can earn 12 per cent per year. i) How much will Jenny have at the end of seven years? (Round to the nearest dollar.)

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The future value of an annuity is calculated using the formula:FV = P * ((1 + r)^n - 1) / rwhere:P is the amount of each paymentr is the annual interest raten is the number of paymentsIn this case, P = $2,500, r = 12%, and n = 7. Plugging these values into the formula, we get:FV = 2500 * ((1 + 0.12)^7 - 1) / 0.12= 2500 * (2.0132 - 1) / 0.12= 2500 * 1.0132 / 0.12= 2500 * 8.4433= $21,108.25Rounding to the nearest dollar, Jenny will have $21,108 at the end of seven years.

Jenny Abel Is Investing $2,500 Today and Will Do So