SOLUTION: Can someone help me with this? I don’t get it! A_1=$4000, I=0.09. n=25 What is the future value of the annuity? I used the underscore for the subscript. Thanks in advance :) g

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: Can someone help me with this? I don’t get it! A_1=$4000, I=0.09. n=25 What is the future value of the annuity? I used the underscore for the subscript. Thanks in advance :) g      Log On


   

Question 766039: Can someone help me with this? I don’t get it!
A_1=$4000, I=0.09. n=25
What is the future value of the annuity?
I used the underscore for the subscript.
Thanks in advance :) grrrr
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!

FV%28A%5B1%5D%29=A%5B1%5D%5B1%5D%28%281%2BI%29%5En-1%29%2FI

FV%28A%5B1%5D%29- is the value of the annuity at time = n
A%5B1%5D- is the value of the individual payments in each compounding period
I -is the interest rate that would be compounded for each period of time
n -is the number of payment periods
given:
$A%5B1%5D=4000, I=0.09, n=25
FV%28A%5B1%5D%29=4000%28%281%2B0.09%29%5E25-1%29%2F0.09
FV%28A%5B1%5D%29=4000%281.09%5E25-1%29%2F0.09
FV%28A%5B1%5D%29=4000%288.623-1%29%2F0.09
FV%28A%5B1%5D%29=4000%287.623%29%2F0.09
FV%28A%5B1%5D%29=30492%2F0.09
FV%28A%5B1%5D%29=338800