I am having trouble with the following problem:(adsbygoogle = window.adsbygoogle || []).push({});

What will be the value of an annuity in today's dollars if $1000 is to be deposited for 18 years into an account paying 4.5% interest compounded annually?

I used the following formula (I'm guessing I've figured something incorrectly)

A= P[(1 + r)^m - 1]/r

P=1000

r=i/n

i=4.5% or .045

n=1

t=18

m=n(t) or 18

1000[1 + .045)^18 - 1/.045

I know this is incorrect because my choices are multiple choice

**Physics Forums | Science Articles, Homework Help, Discussion**

Dismiss Notice

Join Physics Forums Today!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

# Annuity compounded annually

Tags:

**Physics Forums | Science Articles, Homework Help, Discussion**