Loading [MathJax]/jax/output/SVG/config.js
 
+0  
 
0
595
1
avatar

Find the future annuity if payment is $200, rate is 9%, compounded annually, and time is 9 years.

 Oct 27, 2014

Best Answer 

 #1
avatar+23254 
+5

I'm not sure that this will answer your question, because this will find the final value (which is not usually called an annuity); this will find the value of $200 invested at 9%, compounded annually, for 9 years.

The final value is found by using this formula:  A  =  P(1 + r/n)^(n·t)

A  =  final amount                  P = inital payment = $200.00        r = rate (as a decimal) = .09

n = number of times compounded per year = 1                            t = number of years = 9

A = 200(1 + .09/1)^(1·9)    $434.38

 Oct 27, 2014
 #1
avatar+23254 
+5
Best Answer

I'm not sure that this will answer your question, because this will find the final value (which is not usually called an annuity); this will find the value of $200 invested at 9%, compounded annually, for 9 years.

The final value is found by using this formula:  A  =  P(1 + r/n)^(n·t)

A  =  final amount                  P = inital payment = $200.00        r = rate (as a decimal) = .09

n = number of times compounded per year = 1                            t = number of years = 9

A = 200(1 + .09/1)^(1·9)    $434.38

geno3141 Oct 27, 2014

1 Online Users

avatar