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# Value of the annuity at maturity

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Sam deposited \$1,000 dollars today in a fixed-rate, tax-deferred annuity, which guarantees an 8% return with quarterly compounding. Commencing with the next year, he subsequently deposits \$250 every 3 months at the end of the period, for the next 9 years. What is the value of the annuity at maturity?

a. \$10,720
b. \$12,999
c. \$15,038
d. \$15,298

#### Solution Preview

Sam deposited \$1,000 dollars today in a fixed-rate, tax-deferred annuity, which guarantees an 8% return with quarterly compounding. Commencing with the next year, he subsequently deposits \$250 every 3 months at the end of the period, for the next 9 years. What is the value of the annuity at maturity?

a. \$10,720
b. \$12,999
c. \$15,038
d. ...

#### Solution Summary

Calculates the future value of annuity.

\$2.49