Engineering Board Exam Reviewer · Ordinary Annuity · medium

Find the future value of an ordinary annuity of P2,000 per year for 5 years at 8% annual interest.

  1. P11,733.20
  2. P10,000.00
  3. P12,500.00
  4. P11,000.00

Answer

A. P11,733.20

Solution

FV=A(1+i)n-1/i=2000·(1.08)5-1/0.08 P11,733.20.

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