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Financial Maths, STD2 2025 HSC 18 (Adapted)

The table shows future value interest factors for an annuity of $1.
  

A scholarship fund receives a contribution of $4000 at the end of each year for 15 years. The fund earns 5% per annum, compounded annually.

Using the table, calculate the value of the fund at the end of 15 years.   (2 marks)

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\(\$86\,316\)

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\(r=5\%\ \text{annually}\)

\(\text{Compounding periods}=15\)

\(\text{Annuity factor}=21.579\)

\(\therefore\ FV\ \text{(annuity)}=4000\times 21.579=\$86\,316\)

Filed Under: Annuities (Y12-X) Tagged With: adapted, Band 3, smc-7701-10-FV of $1 Annuity Table

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