Business and Finance

Business & Finance
Tutor: None Selected Time limit: 1 Day

Use the simple interest formula method to find the future value of an ordinary annuity of $2500 paid annually after 3 years at 2.9% interest.  Future annuity value is? Total interest earned? Round to nearest cent as needed.

Aug 28th, 2014

I=P*R*T

where:

I= interest.

P= principal

R=rate

T= time

I=2500*2.9/100*3

= $ 218

FUTURE ANNUITY= P+I =218+2500

                             =2,718

Aug 28th, 2014

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Aug 28th, 2014
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Aug 28th, 2014
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