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4. Determine the accumulated value of 13 annual deposits of $1,429 one year after the last deposit, at 2.10% effective. Answe
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Answer #1

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=1429[1-(1.021)^-13]/0.021

=1429*11.2739317

=16110.4484

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=16110.4484*(1.021)^14

=$21551.03(Approx).

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