Asked by margaux haguenauer on Jul 04, 2024
Verified
Explain the concept of the future value of an annuity.
Future Value
The estimated worth of an investment or amount of money at a specific future date, taking into account factors like interest rates or investment growth.
Annuity
A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.
Concept
An abstract idea or a general notion that forms the foundation of a project, strategy, or theory.
- Acquire a thorough understanding of both future and present value in relation to annuities, focusing on ordinary annuities and annuities due.
Verified Answer
LB
Lashanda BarnesJul 11, 2024
Final Answer :
The future value of an annuity is the amount invested today at a specified rate of interest that would accumulate at the date of the final periodic payment.
Learning Objectives
- Acquire a thorough understanding of both future and present value in relation to annuities, focusing on ordinary annuities and annuities due.