Answer to Question #277403 in Finance for I@Lucky

Question #277403

Suppose we have an annuity with 5 annual payments of

Rs.5000 each, starting at the beginning of the year, and the

interest rate is 10% per year. The future value of annuity is


1
Expert's answer
2021-12-08T19:24:30-0500

Future value "=C\u00d7[ \n\\frac{(1+i) \\\\^n \u22121}{i} ]"

Where:

C=cash flow per period

i=interest rate

n=number of payments

"Future\\ Value=5000 \u00d7[ \n\\frac{(1.1) \\\\^5 \u22121}{0.1} ]"


Future value = 30525.5


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