Share
Explore BrainMass

Future value of an annuity: streams of payment

What is the accumulated sum of each of the following streams of payments?

1. $500 a year for 10 years compounded annually at 5 percent
2. $100 a year for 5 years compounded annually at 10 percent
3. $35 a year for 7 years compounded annually at 7 percent
4. $25 a year for 3 years compounded annually at 2 percent

Solution Preview

We are being asked to calculate the future value of an annuity

Annuity years (n) interest ( r ) Future value factor for annuity= ((1+r)^n-1)/r= Accumulated ...

$2.19