Share
Explore BrainMass

Value of the annuity at maturity

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.

$2.19