document.write( "Question 1152730: A)Find the value to each annuity. Round to the nearest dollar \r
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\n" ); document.write( "\n" ); document.write( "**Not sure which formula to use. Please advise. Thank you in advance***.
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Algebra.Com's Answer #774808 by ikleyn(52864)\"\" \"About 
You can put this solution on YOUR website!
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is your annual payment (deposit); r is the annual percentage rate \r\n" );
document.write( "presented as a decimal;  n is the number of deposits (= the number of years, in this case).\r\n" );
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document.write( "Under the given conditions, P = 2000;  r = 0.05;  n = 20.  So, according to the formula (1), you get at the end of the 20-th year\r\n" );
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document.write( "    FV = \"2000%2A%28%28%281%2B0.05%29%5E20-1%29%2F0.05%29\" = $66,131.91.\r\n" );
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document.write( "Note that you deposit only  20*$2000 = $40,000.00.  \r\n" );
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document.write( "The rest,  66,131.91 - 40,000.00 = 26,131.91 is the interest, which the account earns/accumulates in 20 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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