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What is the future value of a $930 annuity payment over five years if interest rates are 9 percent?

1 Answer

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Final answer:

To calculate the future value of an annuity with a $930 payment over five years at an interest rate of 9%, the future value is $5,389.25.

Step-by-step explanation:

To calculate the future value of an annuity, we can use the formula:

Future Value = Annuity Payment x [(1 + Interest Rate)^Number of Periods - 1] / Interest Rate

Plugging in the given values: Annuity Payment = $930, Interest Rate = 9%, Number of Periods = 5 years, we can calculate the future value as follows:

Future Value = $930 x [(1 + 0.09)^5 - 1] / 0.09 = $5,389.25

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User Dathan
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