Asked by
Aiden Huang
on Dec 14, 2024
Verified
What is the future value of a series of 15 annual payments of $750 starting in one year and earning 7% compounded annually?
A) $6,831
B) $12,038
C) $17,673
D) $18,847
E) $32,848
Compounded Annually
Interest calculation on the principal and the accumulated interest once a year.
Annual Payments
Payments made once every year towards a debt or investment.
Future Value
The value of an asset or sum of money at a specific future date, calculated by applying expected rates of growth or interest.
- Acquire the skill to analyze and calculate the future value of investments with consistent contributions.
- Gain insight into the impact that interest rates and the frequency of compounding have on increasing investment value.
Verified Answer
AL
Learning Objectives
- Acquire the skill to analyze and calculate the future value of investments with consistent contributions.
- Gain insight into the impact that interest rates and the frequency of compounding have on increasing investment value.