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What is the future value of an annuity with 11 annual payments of $1,000, starting in one year, at a rate of 5% p.a.?
What is the future value of an annuity with 11 annual payments of $1,000, starting in one year, at a rate of 5% p.a.?
The future value of the annuity can be calculated using the formula: FV = PMT * [(1 + r)^n - 1] / r, where PMT is the annual payment, r is the interest rate, and n is the number of payments. Plugging in the values, FV = $1,000 * [(1 + 0.05)^11 - 1] / 0.05 = $13,822.02.
How many annual payments are there in the annuity?
How many annual payments are there in the annuity?
There are 11 annual payments in the annuity.
When does the first cash flow occur in the annuity?
When does the first cash flow occur in the annuity?
The first cash flow occurs in one year's time.
