Math question help needed

Accounting
Tutor: None Selected Time limit: 1 Day

John will receive $1200 at the beginning of each of the next 7 years, what is the future value of this annuity, assuming that the interest rate is 9% compounded annually? (Round to the nearest whole dollar)

Jun 17th, 2015

Thank you for the opportunity to help you with your question!

A=p(1+r/n)power nt

A=1200(1+0.9/1) Power 1*9

=1200(1.9)power 9

=$1.66e30

=$2e30

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 17th, 2015

pleasure

Jun 17th, 2015

It is incorrect. it is not one of the mutiple choice answers given. It is stating that John will receive $1200 at the beginning of each year for the next 7 years. Not $1200 in total. First year he will get $1200, Second year another $1200 and so on

Jun 17th, 2015
multiple choice answers are : 8400, 12,034, 13234, 11,041, 1,200


Jun 17th, 2015

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Jun 17th, 2015
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Jun 17th, 2015
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