Answer:
$14,091
Explanation:
The compounding formula would be used here, which is as under:
Future Value = P * [1 - (1+i)^-n] / i
Here
P is the periodic payments of $2,100
n is the number of periodic payments made which is once in a year and total of 10 in 10 years. So n = 10 number of periodic payments.
r is the annual interest rate which is 8%
By putting this value in the equation, we have:
Future Value = $2,100 * [1 - (1 + 8%)^-10] / 8%
Future Value = $14,091
