Question

100$ deposited at the end of every week for five years in an account that pays 14%/a , compounded weekly what type of annuity us this find the future value of the annuity using the formula

Answer 1

The future value is:

`100 ((r^n - 1)/(r-1))`
where n is number of weeks and 'r' is the weekly growth factor.

`n = 52*5 = 260 \\ \\ r = 1+ (.14)/(52) = 1.00269`

Subbing into the sum formula gives:

`100((1.00269^(52) - 1)/(.00269)) \\ \\ = 5573.23`