Time Value of Money

Concept:Future value of an ordinary annuity is the total value of a series of equal payments made at the end of each period, compounded to a future date.Explanation:The standard formula for the future value $A(n,i)$ of an ordinary annuity with periodic payment $A$, interest rate $i$ per period, and $n$ periods is:$$A(n,i) = A \left[ \frac{(1+i)^n - 1}{i} \right]$$This formula sums the compounded value of each payment.Answer:Option A: $A(n,i)=A\left[ \; \frac{(1+i)^n-1}{i} \right]$