Assume you are to receive a 10

-

year annuity with annual payments of $800. The first payment will be received

at the end of Year 1, and the last payment will be received at the end of Year 10. You will invest each payment

in an account that pays 7 percent compounded annually. Although the annuity payments stop at the end of

year 10, you will not withdraw any money from the account until 20 years from today, and the account will

continue to earn 7% for the entire 20

-

year period. What will be the value in your account at the end of Year 20

(rounded to the nearest dollar)?

A)

$8,000

B)

$18,342

C)

$21,743

D)

$15,737

Answer is C) $21,743. Could you please explain for me?