To find the amount in an annuity after 4 years with $700 deposited at the end of each year at a 3% interest rate compounded annually, you can use the future value of an ordinary annuity formula:
1. Calculate the future value of each $700 annual deposit after 4 years:
- Year 1: $700 * (1 + 0.03) = $721
- Year 2: $700 * (1 + 0.03)^2 = $742.43
- Year 3: $700 * (1 + 0.03)^3 = $764.32
- Year 4: $700 * (1 + 0.03)^4 = $786.70
2. Add up the future values of each annual deposit:
- $721 + $742.43 + $764.32 + $786.70 = $3014.45
Therefore, the amount in the annuity after 4 years would be $3014.45.
