This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose

Question:

This problem demonstrates the dependence of the of an on the interest rate. Suppose $1000 is invested at the end of each year for 20 years. Calculate the if the investments earn an annually compounded rate of return of:
a. 9%.
b. 10%.
c. 11%.
d. 12%.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...