Find the future value of an annuity of $100 per year for 10 years at 10 percent per year.



$1,437.60


$1,755.25


$1,682.09


$1,593.74


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

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

Where:
- $ P $ is the annual payment,
- $ r $ is the interest rate per period,
- $ n $ is the number of periods.

Given:
- $ P = 100 $ (the annual payment),
- $ r = 10\% = 0.10 $ (the interest rate per year),
- $ n = 10 $ years.

Now, substitute the values into the formula:

\[
FV = 100 \times \left(\frac{(1 + 0.10)^{10} - 1}{0.10}\right)
\]

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Meanwhile, here are 5 related questions for further exploration:
1. How does the future value of an annuity change with a different interest rate?
2. What is the present value of the same annuity?
3. How would increasing the number of periods affect the future value?
4. What is the formula for the future value of a perpetuity?
5. Can we apply this formula to monthly payments instead of yearly ones?

**Tip:** Always double-check your formula for compound interest calculations to ensure the correct values for rate and periods are used.

Find the future value of an annuity of $100 per year for 10 years at 10 percent per year.

Calculate the future value of an annuity with $100 annual payments for 10 years at a 10% interest rate. Explore key finance concepts like annuities and compound interest with this detailed solution. Ideal for college students studying finance or economics.

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