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CH6 What is the future value of $1,600 a year for 30 years at 5 percent...

CH6 What is the future value of $1,600 a year for 30 years at 5 percent interest? Assume annual compounding.

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$111,617.26

$106,302.16

$145,508.23

$114,233.44

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Answer #1

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

=1600[(1.05)^30-1]/0.05

=1600*66.4388475

=$106302.16(Approx).

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