Answer:
Future value of annuity = $81,091.80 (Approx)
Explanation:
Given:
Amount deposit per year A = $240
Number of year n = 40
Rate r = 9% = 0.09
Find:
Future value of annuity
Computation:
[tex]Future\ value\ of\ annuity\ = \frac{A[(1+r)^n-1]}{r}\\\\Future\ value\ of\ annuity\ = \frac{240[(1+0.09)^{40}-1]}{0.09}\\\\Future\ value\ of\ annuity\ = 81,091.798\\\\[/tex]
Future value of annuity = $81,091.80 (Approx)
