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    marinewife22's Avatar
    marinewife22 Posts: 1, Reputation: 1
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    #1

    Jul 17, 2007, 04:09 PM
    Value of annuity
    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's Avatar
    KongTheKonqueror Posts: 75, Reputation: 13
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    #2

    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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