Find the future value of an annuity


Problem:

A restaurant owner wants to buy new kitchen equipment for $25,000. He would like to pay for it through saving up $2,000 a week in a fund that pays 10% interest compounded monthly. How long should he wait to save the entire amount?

Required:

Question: Find the future value of an annuity of $2,615 payable monthly for 3.5 years that starts after 3 months. The interest rate would be 7%.

Note: Please show guided help with steps and answer.

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Accounting Basics: Find the future value of an annuity
Reference No:- TGS0890306

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