Answered

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a. Use the appropriate formula to find the value of the annuity
b. Find the interest
Rate
Periodic Deposit
$6000 at the end of each year
15.5% compounded annually
Time
10 years

Sagot :

The value of the $6000 annuity given annual compounding is $124,836.12.

What is the value of the annuity?

The value of the annuity can be determining using this formula: amount deposited x annuity factor

Annuity factor = {[(1+r)^n] - 1} / r

Where:

  • n = number of years
  • r = interest rate

$6000 x [(1.155^10) - 1/0.155] = $124,836.12

To learn more about annuities, please check: https://brainly.com/question/24108530

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