Answer:
$3,602,710.08
Explanation:
The payments per year for 45 years
Each year, payment will be $ 4750
After 45 years, the total amount will be the future value of $4750 every year at 10.17 percent. i.e., annuities of $4750 for 45 years
The formula for the future value of annuities is as follows.
FV = P[ (1 +r )n -1/r]
In this case: p =$4750: n= 45. r = 10.17% or 0.1017
FV =$4,750[(1+0.1017)45-1/0.1017]
=$4750{(1.1017)45-1/0.1017]
=$4750(77.1359/0.1017
=$4750 x 758.465280
=$3,602,710.08
