Value of annuity

marinewife22 · #1 Jul 17, 2007, 04:09 PM

What is the future value of a 5-year ordinary annuity that promises to pay you $300 each year? The rate of interest is 7 percent.

KongTheKonqueror · Jul 17, 2007, 09:45 PM

FVoa = PMT [(((1 + i)^n )- 1)/ i]

FVoa = Future Value of an Ordinary Annuity
PMT = Amount of each payment
i = Interest Rate Per Period
n = Number of Periods



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