future value of an annuity problem? - Business and Finance Forum

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11-07-2009, 01:19 AM

Steven M

Junior Member

Join Date: Aug 2009

Posts: 7

future value of an annuity problem?

The future value of an annuity IF value is 4.5 and has interest of 10% for 4 years. In order to accumulate $8,000 by the end of 4 years, how much should the annual payments be?

A. 2,500
B. 1,778
C. 2,000
D. None of the above

Would it not be 8,000 x 4.5? This would be it the answer is D. I'm not really sure due to the way this problem is worded. Anyone know?

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