Question

# Find the future value of an annuity of $1300 paid at the end of each year for 10 years, if interest is earned at a rate of 7%, compounded annually. (Round your answer to the nearest cent.) Confidence intervals ANSWERED asked 2020-11-08 Find the future value of an annuity of$ 1300 paid at the end of each year for 10 years, if interest is earned at a rate of $$7\%,$$ compounded annually. (Round your answer to the nearest cent.)

2020-11-09
Step 1
Use the formula:
$$F=P\frac{((l\ +\ i)^{n}\ -\ 1)}{i}$$
Where P id the regular payment amount i is the annual interest rate n is the time-intervals of repayment.
Step 2
Apply the formula:
$$F=1300\frac{((1\ +\ 0.07)^{10}\ -\ 1)}{0.07}$$
$$= 1761.3823$$
The future value of annuity, rounded to the nearest cent, is \$ 17961.38.