The Cooper Foundation contributes $50,000 per year into an annuity fund for building a new zoo. The fund earns 4.5%interest. Find the amount in the fund at the end of 20 years. (Round your final answer to two decimal places.)

To solve this problem, we need to find the future value of an annuity, where a fixed amount is contributed periodically. The formula to calculate the future value of an ordinary annuity is:

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

Where:
- $ A $ is the future value of the annuity (the amount in the fund after 20 years),
- $ P $ is the annual contribution (\$50,000),
- $ r $ is the interest rate per period (4.5% or 0.045),
- $ n $ is the number of periods (20 years).

Let's calculate the future value using this formula.

\[
A = 50,000 \times \frac{(1 + 0.045)^{20} - 1}{0.045}
\]

First, we calculate $(1 + 0.045)^{20}$, then subtract 1, and finally divide by 0.045. I'll calculate this for you.The amount in the fund at the end of 20 years will be approximately \$1,568,571.14.

Would you like more details on how this was calculated or have any further questions?

Here are 5 related questions you might explore:
1. What would the amount be if the interest rate were 5% instead of 4.5%?
2. How much interest will be earned over the 20 years?
3. How would the future value change if the contribution were \$60,000 per year?
4. What if the contributions were made monthly instead of annually? How would that affect the result?
5. What is the total amount of contributions made over the 20 years?

**Tip:** The more frequent the contributions (e.g., monthly or quarterly), the higher the future value due to compound interest effects.

The Cooper Foundation contributes $50,000 per year into an annuity fund for building a new zoo. The fund earns 4.5% interest. Find the amount in the fund at the end of 20 years. (Round your final answer to two decimal places.)

Calculate the future value of an annuity where $50,000 is contributed annually for 20 years with an interest rate of 4.5%. Learn about annuity, compound interest, and the formula to find the future value of periodic investments. Suitable for high school students in Grades 10-12.

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