Math question help needed

label Accounting
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

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-1)]

               r-1

where P = principal r = rate of interest and n = numb

A = 1200 (1 + 9/100) ^7

               0.09

= 1200 (1.09)^7

       0.09

= 1200 × 1.82804

     0.09

= 2193. 64

   0.09

= $2473.87


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

rounded to nearest dollar =$2474


Jun 17th, 2015

has not come out right - answer attached as a document

correct answer is $23041

Annuity.docx 

Jun 17th, 2015

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