Answer:
FV = A((1 + r)n - 1)
r
FV = 1,000((1+ 0.08)3 - 1
0.08
FV = 1,000 x 3.2464
FV = $3,246.40
The correct answer is B
Explanation:
In this case, there is need to calculate the future value of an ordinary annuity for 3 years at 8% interest rate.
She will save approximate $3,246.40 for the down payment Option(b) is correct.
An ordinary annuity is a progression of equivalent installments made toward the finish of back to back periods over a decent time span.
While the installments in an ordinary annuity can be made as habitually as each week, by and by they are for the most part made month to month, quarterly, semi-every year, or yearly Something contrary to an ordinary annuity is an annuity due, in which installments are made toward the start of every period. These two series of installments are not equivalent to the monetary item known as an annuity, however they are connected.
Instances of ordinary annuities are interest installments from bonds, which are by and large made semiannually, and quarterly profits from a stock that has kept up with stable payout levels for quite a long time. The current worth of an ordinary annuity is generally reliant upon the overall loan fee.
FV = A((1 + r)n - 1)
FV = 1,000((1+ 0.08)3 - 1
FV = 1,000 x 3.2464
FV = $3,246.40
Therefore Option(b) is correct.
Learn more about Ordinary Annuity here:
brainly.com/question/13369387
#SPJ2
