bmaggie

Consider a 10-year annuity that promises to pay out $10,000 per year; given this is an ordinary annuity and that an investor can earn 10% on her money, the future value of this annuity, at the end of 10 years, would be:

A) $175,312.

B) $110.000.

C) $159,374.

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N = 10; I/Y = 10; PMT = -10,000; PV = 0; CPT → FV = $159,374.