Future value of an annuity: Terri Garner will invest $3,000 in an IRA for the next 30 years starting at the end of this year. The investment will earn 13 percent 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 = P * [(1 + r)^n - 1] / r, where P 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 the future value closest to $897,598.

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