Answer :
The future value of ordinary annuity $1000 a year for 10 years at 10% year compounded annually is $15937.
The value of a sum of money that will be paid on a specified date in the future is known as its future value. Since each payment is made at the end of a period, the formula for the future value of an ordinary annuity refers to the value on a specified future date of a series of periodic payments.
Given,
R=$1000, n=10, i=10%=10/100=0.1
The formula to calculate the future value is
FV=R[(1+i)^n-1]/i
[tex]FV=R(\frac{(1+i)^{n} -1}{i})[/tex]
[tex]FV=1000(\frac{(1+0.1)^{10} -1}{0.1})[/tex]
[tex]FV=1000(\frac{(1.1)^{10} -1}{0.1})[/tex]
[tex]FV=1000(\frac{1.593742}{0.1})[/tex]
[tex]FV=1000\times15.9374[/tex]
[tex]FV=15937.4[/tex]
Future Value approximately equal to $15937.
Therefore, the future value of the ordinary annuity $100 a year for 10 years at 10% compounded annually is $15937, Option c is the correct answer.
To learn more on future value here:
https://brainly.com/question/8286272#
#SPJ4
