This problem demonstrates the dependence of the future value of an annuity on the number of payments. Suppose $1,000 is invested at the end of each year. Assume the investments earn 5% compounded annually. Calculate the future value of the investments after each of the following numbers of payments:
a) 5 b) 10 c) 15 d) 20 e) 25 f) 30
Note that the future value increases proportionately more than n as n is increased.

Question

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The Answer of This problem demonstrates the dependence of the future value of an annuity on the number of payments. Suppose $1,000 is invested at the end of each year. Assume the investments earn 5% compounded annually. Calculate the future value of the investments after each of the following numbers of payments:
a) 5 b) 10 c) 15 d) 20 e) 25 f) 30
Note that the future value increases proportionately more than n as n is increased.

This Problem Demonstrates the Dependence of the Future Value of an Annuity