Answer:
$299,452.668
Explanation:
The computation of future value of annuity is shown below:-
Future value of annuity = Annuity × ((1 + rate)^Time period - 1) ÷ Rate
= $1,500 × ((1 + 0.07)^40 - 1) ÷ 0.07
= $1,500 × ((1.07)^40 - 1)) ÷ 0.07
= $1,500 × (14.97445784 -1) ÷ 0.07
= $1,500 × 13.97445784 ÷ 0.07
= $1,500 × 199.635112
= $299,452.668
Therefore for computing the future value of annuity we applied the above formula.
