Glass Factory purchased an annuity for $500,000 and expects to earn a 2% return in five years. Which of the following represents the formula to find the future value of the annuity in five years?
1. Future Value = $500,000/ (Annuity FV factor for i= 2%, n= = 5)
2.Future Value = $500,000+ (Annuity FV factor for i = 2%, n = 5)
3.Present Value = $500,000 - (Annuity FV factor for i = 2%, n = 5)
4.Future Value = $500,000 × (Annuity FV factor for X i = 2%, n = 5)