Question 766039

{{{FV(A[1])=A[1][1]((1+I)^n-1)/I}}}


    {{{FV(A[1])}}}- is the value of the annuity at time = n
    {{{A[1]}}}- 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[1]=4000}}}, {{{I=0.09}}}, {{{n=25}}}

{{{FV(A[1])=4000((1+0.09)^25-1)/0.09}}}

{{{FV(A[1])=4000(1.09^25-1)/0.09}}}

{{{FV(A[1])=4000(8.623-1)/0.09}}}

{{{FV(A[1])=4000(7.623)/0.09}}}

{{{FV(A[1])=30492/0.09}}}

{{{FV(A[1])=338800}}}