The future value of ordinary annuity is given by the formula:
[tex]FV=A\lbrack\frac{(1+i)^n-1}{i}\rbrack[/tex]
Where
A = annuity cash flow,
i = interest rate, and
n = number of payments.
The future value of annuity measures the value of the series of the recurring payments at a given point of time in future at a specified interest rate.
We are given,
A = 100
i = 0.03
n = 4 year x 12 months = 48
Substituting the values, we get:
[tex]\begin{gathered} FV=A\lbrack\frac{(1+i)^n-1}{i}\rbrack \\ FV=100\lbrack\frac{(1+0.03)^{48}-1}{0.03}\rbrack \\ FV=100\lbrack\frac{(1.03)^{48}-1}{0.03}\rbrack \\ FV\approx10440.84 \end{gathered}[/tex]Answer$10, 440.84
