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Future Value of an Annuity Riley Bur You are a financial adviser. Your client is thinking of investing $1,000.00 at the end of every
Future Value of an Annuity Riley Bur You are a financial adviser. Your client is thinking of investing $1,000.00 at the end of every six months for the next 10 years with the invested funds earning 7.3% compounded semi-annually. Your client wants to know how much money she will have after 10 years. What do you tell your client? a. Determine the annuity type. Ordinary Simple Annuity O Ordinary General Annuity O Simple Annuity Due O General Annuity Due b. Identify the following pieces of information to be used to calculate the future value of the annuity. Periodic Payment: PMT = Number of Payments per Year: PY Total Number of Payments: N= Annual Interest Rate: r = = Number of Compoundings per Year: CY c. Your client will have after 10 years. =
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