What is the future value of 15 periodic payments of $39,000 each made at the end of each period and compounded at 8%? (Round answer to O decimal places, e.g. 458,581.) Future value 2$
What is the future value of 15 periodic payments of $39,000 each made at the end of each period and compounded at 8%? (Round answer to O decimal places, e.g. 458,581.) Future value 2$
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Click here to view the factor table.
https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2464a114-c9af-41c5-aceb-8df3482bf0f4%2Fd92fb5ee-2d10-4da5-b168-7ed8dceddea5%2Fycrzoub_processed.png&w=3840&q=75)
Transcribed Image Text:**Instruction for Using Interest Tables**
When solving the following questions, refer to the appropriate interest table. It is important to note that each question is independent and should be calculated separately.
For precision in your calculations, use five decimal places as shown in the factor table provided. Ensure accuracy by maintaining this level of detail.
To access the factor table, [click here to view the factor table](#).
![**Educational Content on Future Value of Annuities**
**Question:**
What is the future value of 15 periodic payments of $39,000 each made at the end of each period and compounded at 8%?
*Round answer to 0 decimal places, e.g., 458,581.*
**Calculation:**
To calculate the future value of these periodic payments (also termed as an annuity), you can use the Future Value of Annuity formula:
\[ FV = P \times \frac{(1 + r)^n - 1}{r} \]
- **P** is the periodic payment amount ($39,000).
- **r** is the interest rate per period (8% or 0.08).
- **n** is the number of periods (15).
Plug in the values to compute the future value.
**Interactive Element:**
Input box for the calculated future value:
- $ [_________]
By using this formula, students can understand how future financial values are calculated based on regular investments and compound interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2464a114-c9af-41c5-aceb-8df3482bf0f4%2Fd92fb5ee-2d10-4da5-b168-7ed8dceddea5%2Fn0ggkj7_processed.png&w=3840&q=75)
Transcribed Image Text:**Educational Content on Future Value of Annuities**
**Question:**
What is the future value of 15 periodic payments of $39,000 each made at the end of each period and compounded at 8%?
*Round answer to 0 decimal places, e.g., 458,581.*
**Calculation:**
To calculate the future value of these periodic payments (also termed as an annuity), you can use the Future Value of Annuity formula:
\[ FV = P \times \frac{(1 + r)^n - 1}{r} \]
- **P** is the periodic payment amount ($39,000).
- **r** is the interest rate per period (8% or 0.08).
- **n** is the number of periods (15).
Plug in the values to compute the future value.
**Interactive Element:**
Input box for the calculated future value:
- $ [_________]
By using this formula, students can understand how future financial values are calculated based on regular investments and compound interest.
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