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Question 12 Compute the future value of an annuity of $2,000 for 10 years at 8% a. $28,270 b. $28,720 c. $28,547 d. $28,972
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Answer #1

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

=2000[(1.08)^10-1]/0.08

=2000*14.4865625

=$28972(Approx).

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