Calculation of Future Value of Annuity:

An annuity is a series of equal payments made at regular intervals. In this case, we have an annuity of 1,000 made annually for 5 years at the interest of 14% compounded annually.

Formula for the Future Value of Annuity:

The formula for the future value of an annuity is:

FV = P * [(1 + r)n - 1] / r

Where:
FV = Future value of the annuity
P = Payment made each period
r = Interest rate per period
n = Number of periods

Calculation of Future Value of Annuity of 1,000 made annually for 5 years:

Using the formula above, we can calculate the future value of the annuity as follows:

P = 1,000
r = 14% compounded annually
n = 5 years

FV = 1,000 * [(1 + 0.14)5 - 1] / 0.14
FV = 1,000 * (1.869 - 1) / 0.14
FV = 1,000 * 0.869 / 0.14
FV = 6,125.71

Therefore, the future value of the annuity of 1,000 made annually for 5 years at the interest of 14% compounded annually is 6,125.71.

Conclusion:

The future value of an annuity can be calculated using the formula FV = P * [(1 + r)n - 1] / r. In this case, the future value of the annuity of 1,000 made annually for 5 years at the interest of 14% compounded annually is 6,125.71.

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