Question

Joe Sullivan invests $9,000 at the end of each year for 20 years. The rate of interest Joe gets is 8 percent annually. The final value of Joe's investment at the end of the 20th year on this ordinary annuity

Answer 1

The answer is $411858

Compound interest formula is:
P = A(rˣ-1)/r
P - final amount
A - final amount
r - interest rate
x - time period

P = ?
A = 9000
r = 8% = 8/100 = 0.08
x = 20

P = A(rˣ-1)/r
P = 9000(1.08²⁰ - 1)/0.08
P = 9000 * 45.762
P = $411858