Calculate the future value of S of an annuity using the following formula:
S =R(1+i)^n-1/i)
given R=250,i=0.001;n=13
please show the workout thankyou
To calculate the future value (S) of an annuity using the formula you provided, you need to plug in the given values of R, i, and n:
S = R(1+i)^n-1/i
Given:
R = 250,
i = 0.001,
n = 13
Now, let's substitute the values into the formula:
S = 250(1+0.001)^13-1/0.001
First, let's simplify the exponent:
S = 250(1.001)^12/0.001
Next, calculate the value of (1.001)^12:
(1.001)^12 = 1.01204536
Now, substitute the calculated value back into the formula:
S = 250(1.01204536)/0.001
Finally, perform the multiplication and division:
S = 250 * 1.01204536/0.001
S = 250,000.9084/0.001
S ≈ 250,000,908.4
Therefore, the future value of the annuity (S) is approximately 250,000,908.4.