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

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# Annuity compounded annually

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