Description
If you invest $900 per year in an ordinary annuity where interest is not taxed, what will be of the amount of the annuity for each interest rate for a 10 year time period at 5% 7% 9% 11% 13%
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Explanation & Answer
Thank you for the opportunity to help you with your question!
In each of these cases we have to evaluate the future value of the annuity
It is given by the formula
Here the A=$900
r=rate of interest.
a)When r=5% =.05
b)When r=10%=0.1
c)When r=9%d)When r=11%e)When r=13%Please rate my answer so that I can further help you in the future.Thanks
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