Question

Madison has an annuity that pays $9003 at the beginning of each year. If the economy grows at a rate of 3.4% each year, what is the value of the annuity if she received it in a lump sum now rather than over a period of 9 years?

Answer 1

Your equation would look like this:

y=9003(1.034)^9
y=$12,164 about