You just won the lottery. You have chosen the annuity option which gives you a total of 16 annual cash payments of $5,000 each, with the first payment being made one year from today. You decide to save each of them in the bank and after the last cash payment keep all the money saved until a future date. The bank pays a nominal annual interest rate of 14%. How much of your account with the bank be if you leave the money in the bank to be withdrawn all in 26 years from today.

Answer rating: 100% (QA)

To calculate the future value of the annuity we can use the formu... View the full answer