Answer:
$63002.50
Explanation:
The future value of an annuity is how much a stream of A dollars invested each year at 'i' interest rate will be worth in 'n' years.
The formula is FV = A {[(1 + i)ⁿ - 1] / i} (1 + i).
FV = Future Value = ?
A = A dollars invested each year = $1000
i = Interest Rate = 10%
n = Number of years = 20
FV = 1000 {[(1 + .1)²⁰ - 1] / 0.1} (1 + 0.1)
FV = 1000 {[(1.1)²⁰ - 1] / 0.1} (1.1)
FV = 1000 {[6.727490 - 1] / 0.1} (1.1)
FV = 1000 {[5.727490] / 0.1} (1.1)
FV = 1000 {57.274999} (1.1)
FV = 57274.90 (1.1)
FV = 63002.50
FV = $63003
After 20 years Lea Wilson will get $63003 at 10% interest rate when invested $1000 annually.
