Question 64441
If I have the right formula, this is my solution
{{{FVA = A*((1 + r)^n - 1) / r}}}
FVA = future value of annuity
A = value of payments made each period
r = interest rate compounded for each period
n = number of payment periods
{{{FVA = 30*((1 + .05)^(19*12) - 1) / .05}}}
{{{FVA = 30*((1.05)^(228) - 1) / .05}}}
{{{log(FVA) = log(30) + 228*log(1.05) -(log(5) + log(10^2))}}}
{{{log(FVA) = 1.477 + 228*.0212 - 2.699}}}
{{{log(FVA) = 1.477 + 4.831 - 2.699}}}
{{{log(FVA) = 3.609}}}
{{{FVA = 10^3.609}}}
{{{FVA = 4064.43}}}
The amount of the annuity when their daughter
turns 19 is $4064.43