Future Value of Annuity
Question: What is the future value of a 4-year annuity, if the annual interest is 5%, and the annual payment is $1,000?
Solution- i = 5%; PMT = $1,000; t =4; FV = ?
$1,000x [1+ (1.05) + (1.05) 2 + (1.05) 3] =
$1,000 x [FVIFA (4,5%)] =
$1,000 x [4.3101] = $4,310
is my calculation correct? please explain