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Sagot :
Answer:
Given that,
Payments of $5,000 at the end of each year for 15 years at 8% interest compounded annually.
P=5000
n=15
r=8%
That is: r=0.08
From the definition of annuity, we have that
[tex]FV=P(\frac{(1+r)^n-1}{r})[/tex]where FV is the future value and r is the interest.
Substitute the values we get,
[tex]FV=5000(\frac{(1+0.08)^{15}-1}{0.08})[/tex]Solving this using calculator we get,
[tex]FV=135760.57[/tex]Answer is: $135760.57
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