Find the future value of an ordinary annuity of $5,000 paid quarterly for 4 years, if the interest rate is 9%, compounded quarterly. (Round your answer to the nearest cent.)
$ ____

To find the future value of an ordinary annuity, we use the following formula:

\[
FV = P \times \frac{\left(1 + \frac{r}{n}\right)^{nt} - 1}{\frac{r}{n}}
\]

Where:
- $ FV $ is the future value we want to find.
- $ P $ is the payment amount per period, which is $5,000.
- $ r $ is the annual interest rate, which is 9% or 0.09.
- $ n $ is the number of compounding periods per year, which is 4 for quarterly compounding.
- $ t $ is the number of years, which is 4 years.

Let's calculate the future value using the given values.The future value of the ordinary annuity is approximately **$95,026.99**.

Would you like any further details or have any questions?

Here are five related questions that might interest you:
1. How would the future value change if the payments were made monthly instead of quarterly?
2. What if the interest rate were increased to 12%?
3. How much would the future value be if the payments were $6,000 instead of $5,000?
4. What would be the future value if the annuity lasted for 5 years instead of 4?
5. How does the future value compare to the total amount of money paid into the annuity?

**Tip:** The future value of an annuity depends significantly on the interest rate and the frequency of compounding, so always consider these factors when planning for the future.

Discover how to calculate the future value of a $5,000 quarterly annuity over 4 years at a 9% interest rate, compounded quarterly. Get a step-by-step solution with the Future Value of Annuity formula applied. Suitable for students in Grades 10-12.

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