Walter B. answered • 07/15/17

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The formula for the Future Value of an annuity is

Future Value = PMT [((1 + r)

^{n}- 1) / r] = $1400 [((1 + .1)^{8}- 1) /.1] = $16010.24a. So Ruben would have $16010.24 at the end of 8 years.

b. at the end of the next years the investment would be worth

Future Value = Present Value * (1+r)

^{n}= Present Value * (1.1)^{9 }= $16010.24 * 2.357948 = $37,751.31Ruben would have $37,751.31 at the end of 9 more years