document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1088950>Question 1088950</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the future value of an ordinary annuity of $800 paid quarterly for 4 years, if the interest rate is 12%, compounded quarterly. (Round your answer to the nearest cent.)  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #703350 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=703350\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> annuity is 800 every quarter.<BR>\n" );
document.write( "time periods are quarters<BR>\n" );
document.write( "4 years * 4 time periods a year = 16 time periods.<BR>\n" );
document.write( "interest rate percent of 12% per year / 4 = 3% per quarterly time period.<BR>\n" );
document.write( "you want the future value of the annuity.\r<BR>\n" );
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document.write( "the following time value of money calculator will do it for you.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>.\r<BR>\n" );
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document.write( "inputs are:\r<BR>\n" );
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document.write( "present value = 0<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of periods = 16<BR>\n" );
document.write( "payment amount = 800<BR>\n" );
document.write( "interest rate per period % = 3<BR>\n" );
document.write( "select payment at end of time period\r<BR>\n" );
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document.write( "click on FV and the calculator tells you that the future value of the annuity is equal to -16,125.5\r<BR>\n" );
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document.write( "if you had entered the payment as negative, then the future value would have been positive.\r<BR>\n" );
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document.write( "your solution is that the future value of the annuity is $16,125.5\r<BR>\n" );
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document.write( "here's a picture of the results of the use of the calculator.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2017/072801.jpg\" alt=\"$$$\" </>\r<BR>\n" );
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document.write( "if you want to calculate it manually, use the following formula.\r<BR>\n" );
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document.write( "FUTURE VALUE OF AN ANNUITY WITH END OF TIME PERIOD PAYMENTS \r<BR>\n" );
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document.write( "f = (a*((1+r)^n-1))/r \r<BR>\n" );
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document.write( "f is the future value of the annuity.<BR>\n" );
document.write( "a is the annuity.<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods \r<BR>\n" );
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document.write( "make sure to use the parentheses exactly as shown, otherwise you won't get the right answer.\r<BR>\n" );
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document.write( "a = 800<BR>\n" );
document.write( "r = .03 (rate = rate percent divided by 100)<BR>\n" );
document.write( "n = 12\r<BR>\n" );
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document.write( "you will get a future value of $16,125.5\r<BR>\n" );
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document.write( "this agrees with the calculator results.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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