Find the future value of an annuity if you invest $1,550 annually for 5 years at 11.5% compounded annually.
To find the future value of an annuity, you can use the formula for the future value of an ordinary annuity:
Future Value = P * ((1 + r)^n - 1)/r
Where:
P = Payment amount per period
r = Interest rate per period
n = Number of periods
In this case:
P = $1,550
r = 11.5% = 0.115 (converted to decimal form since it is compounded annually)
n = 5 years
Now, let's plug in these values into the formula and calculate the future value:
Future Value = $1,550 * ((1 + 0.115)^5 - 1)/0.115
Calculating this equation will give us the future value of the annuity after 5 years.