1. **State the problem:** We need to find the future value of an ordinary annuity with the following details: - Periodic payment: 1400 - Payment interval: 3 months - Term: 14 years - Interest rate: 5% annually - Conversion period: monthly 2. **Convert all terms to consistent units:** - Since payments are every 3 months, there are 4 payments per year. - Total number of payments $n = 14 \times 4 = 56$. - The nominal annual interest rate is 5%, compounded monthly, so the monthly interest rate is $\frac{5}{100} \div 12 = 0.004167$. - The interest rate per payment period (3 months) is $i = 0.004167 \times 3 = 0.0125$. 3. **Use the future value of an ordinary annuity formula:** $$ FV = P \times \frac{(1+i)^n - 1}{i} $$ where - $P = 1400$ (payment per period), - $i = 0.0125$ (interest rate per period), - $n = 56$ (number of payments). 4. **Calculate:** $$ (1+i)^n = (1.0125)^{56} \approx 2.000978 $$ $$ FV = 1400 \times \frac{2.000978 - 1}{0.0125} = 1400 \times \frac{1.000978}{0.0125} = 1400 \times 80.07824 = 112109.54 $$ 5. **Final answer:** The future value of the annuity is approximately **112109.54**.