Question 1077463
The future value of an annuity is given by the formula P=r(FV)/(1+r)^n -1, where P=payment,r=periodic rate of interest,and n is the number of periods. Here,we have payments of 800/month, or 9600/year. The interest rate is 4.2%, and there are 25 periods. So:
9600=.042(FV)/(1.042)^25 -1
FV=410743.60
The expected future value of this annuity is $410743.60. &#9786;&#9786;&#9786;&#9786;