Question 10 1 pts If your investment has a return rate of 10.4%, what is the annuity that you will have to invest for the next five years to reach your goal of $26,000 five years from now? $4,055.96 $4,520.71 $4,224.96 $3,971.46 $3,886.96
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Step 1: The formula for the future value of an ordinary annuity is: $$FV = P \dfrac{[(1 + i)^n - 1]}{i}$$ where: * FV is the future value of the annuity * P is the payment amount (annuity) * i is the interest rate per period * n is the number of periods Show more…
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