Answer:
FV= $17,105
Explanation:
Giving the following information:
Annual investment= $5,500
Interest rate= 11%
Number of periods= 3
I will assume that the annual deposit is at the end of the year.
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {5,500*[(1.11^2) - 1]} / 0.11 + 5,500
FV= $17,105
