Find the future value for the ordinary annuity with the given payment and interest rate.
PMT $=\$ 2,000 ; 1.00 \%$ compounded monthly for 2 years.
The future value of the ordinary annuity is $\$ \square$.
Answer
\(\boxed{\$48,462.82}\) is the future value of the ordinary annuity.
Step 1 ：We are given the following values: PMT = $2000, r = 1.00% = 0.01, n = 12 (since interest is compounded monthly), and t = 2 years.
Step 2 ：We can calculate the future value of an ordinary annuity using the formula: \(FV = PMT * [(1 + r/n)^(nt) - 1] / (r/n)\)
Step 3 ：Substituting the given values into the formula, we get: \(FV = 2000 * [(1 + 0.01/12)^(12*2) - 1] / (0.01/12)\)
Step 4 ：Solving the above expression, we find that the future value of the annuity is approximately $48,462.82
Step 5 ：\(\boxed{\$48,462.82}\) is the future value of the ordinary annuity.
