Find the amount (future value) of ordinary annuity $1000 a year for 10 years at 10%/year compounded annually. O a. $15,...

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Question

Find the amount (future value) of ordinary annuity $1000 a year for 10 years at 10%/year compounded annually. O a. $15,500 ob

business accounting

Answer 1

Answer #1

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

=$1000[(1.1)^10-1]/0.1

=$1000*15.9374246

=$15937(Approx).

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Answer 2

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