Use a calculator to evaluate an ordinary annuity formula
A = m


1 + 
r
n
	nt
 
 − 1
r
n

for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent.)
$100; 7%; 10 yr

The formula for the future value $ A $ of an ordinary annuity is given as:

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

Where:
- $ m $ is the monthly payment
- $ r $ is the annual interest rate
- $ n $ is the number of payments per year (12 for monthly payments)
- $ t $ is the total time in years

### Given values:
- $ m = 100 $
- $ r = 0.07 $ (7% annual interest rate)
- $ n = 12 $ (monthly payments)
- $ t = 10 $ years

Let’s plug in these values and compute the future value $ A $.

\[
A = 100 \times \left( \frac{(1 + \frac{0.07}{12})^{12 \times 10} - 1}{\frac{0.07}{12}} \right)
\]

I'll calculate this now.The future value $ A $ of the ordinary annuity is **$17,308.48** after 10 years, with monthly payments of $100 at an annual interest rate of 7%.

Would you like more details on how the calculation was performed or have any other questions?

Here are 5 related questions you might find interesting:
1. How would the future value change if the interest rate increased to 8%?
2. What is the difference between an ordinary annuity and an annuity due?
3. How does the compounding frequency (monthly, quarterly, etc.) affect the future value?
4. What is the formula for calculating the present value of an annuity?
5. How would a lump sum investment compare to regular annuity payments?

**Tip:** In an ordinary annuity, payments are made at the end of each period, which can make a significant difference compared to annuity due.

Use a calculator to evaluate an ordinary annuity formula A = m * [(1 + r/n)^(nt) - 1] / (r/n) for m, r, and t (respectively). Assume monthly payments. $100; 7%; 10 yr

Learn how to calculate the future value of an ordinary annuity with $100 monthly payments, a 7% annual interest rate, and a 10-year duration. This guide walks through the formula for annuities and applies compound interest principles. Perfect for finance students and advanced math learners.

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