Future value of an annuity: Terri Garner will invest $3,000 in an investment account for the next 30 years. The investment will earn 13 per cent annually. How much will she have at the end of 30 years? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula: FV = Pmt * [((1 + r)^n - 1) / r], where Pmt is the annual payment ($3,000), r is the annual interest rate (0.13), and n is the number of years (30). Plugging in these values gives approximately $897,598.

Future Value of an Annuity: Terri Garner Will Invest $3,000