Annuity compounded annually

by TonyC
Tags: annually, annuity, compounded
 HW Helper P: 925 There are a couple of possibilities. One, your last equation either has a typo or you did it wrong: 1000[1 + .045)^18 - 1/.045 ==> should be $$\frac{1000[(1 + .045)^{18} - 1]}{.045}$$ The second is that it's not an annuity problem but rather a simple compound interest problem $$FV = PV(1+r)^m$$