i need help with the above problem. please don t just pout an answer please alos

Question

i need help with the above problem. please don t just pout an answer please alos give the explanation.

when equal payment are made at fixed intervals for a specific number of period you will tret them as,,,,,,,,,,,,,, (annuity,perpetuity,complex cash flow )

thank you

3. Future value of annuities 1 when equal payments are made at fixed intervals for a specifiled number of periods, you will teat them as You are planning to put 1250 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a down payment on a condo. If you are investing at an annual interest rate of 9%, how much money will you have at the end of eight years? O $15,026 O $13,786 $15,874 O $16,509 O $14,249 You decided to deposit your money in the bank at the beginning of the year instead of the end of the year, but now you are making payments of 1500 at an annual interest rate of 4%. How much money will you have available at the end of nine years? O $15,874 O $14,961 O $14,249 O $16,509

Explanation / Answer

1)

2)

Future value of annuity P×[(1+r)^n-1]÷r Here, 1 Interest rate per annum 9.00% 2 Number of years                                                                 8 3 Number of compoundings per per annum                                                                 1 1÷3 Interest rate per period ( r) 9.00% 2×3 Number of periods (n) 8 Payment per period (P) $                                                    1,250 Future value of annuity $                                                  13,786 1250*((1+9%)^8-1)/9%

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