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24-11-2020
Business

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Larson Lumber makes annual deposits of $500 at 6% compounded annually for 3 years. What is the future value of these deposits?

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Parrain Parrain

25-11-2020

Answer: $‭1,591.8‬0

Explanation:

This is an annuity as the deposits are constant.

The Future value of an annuity is;

= Annuity * Future value interest factor of annuity, 6% , 3 years

= 500 * 3.1836

= $‭1,591.8‬0

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