Question

Future value of ordinary annuity

what is the future value of an annuity if the size of each payment is 2,500 payable at the end of each quarter for five years at an interest rate of 16% compounded quarterly?

Answer 1

$FVa = \frac{2,500×((1 + 0.16/4)^{20} - 1)} {0.16/4} = 74,445.2.$