Questions and Answers
What is the primary characteristic of a future value annuity?
What does the variable 'F' represent in the future value of an annuity formula?
What is the formula for calculating the future value of an annuity?
What is the result of adding up all the payments made into an annuity account over time?
Signup and view all the answers
What is the purpose of the interest rate 'i' in the future value of an annuity formula?
Signup and view all the answers
If an annuity has a payment amount of $500 per quarter, and an interest rate of 2% per quarter, how would you calculate the future value of this annuity after 10 years?
Signup and view all the answers
What happens to the future value of an annuity if the payment amount increases, but the interest rate remains constant?
Signup and view all the answers
An annuity has a payment amount of $1,000 per year, and an interest rate of 5% per year. If the interest rate increases to 6% per year, what happens to the future value of the annuity?
Signup and view all the answers
What is the relationship between the number of periods (n) and the future value of an annuity?
Signup and view all the answers
If an annuity has a payment amount of $200 per month, and an interest rate of 3% per year, what would you need to do to calculate the future value of this annuity after 5 years?
Signup and view all the answers