Answer to Question #221557 in Financial Math for Saliya priyankara

Question #221557

Find the accumulated value of an ordinary simple annuity of Rs 3 000 per year for 7 years, if money is worth j1=8%


1
Expert's answer
2021-07-30T08:54:39-0400

P = Periodic payments

r = rate of interest

n = no of years

Future Value of Annuity =P((1+r)n1)r= \frac{P ( (1 + r)^n - 1 ) }{ r}

=3000×((1+8  %)71)8  %=26768.41= \frac{3000 \times ((1 + 8\; \%)^7 - 1) }{ 8\; \%} \\ = 26768.41


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