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What is the FV of a 3-year $100 annuity, if the quoted interest rate is 10%,...

What is the FV of a 3-year $100 annuity, if the quoted interest rate is 10%, compounded semiannually? what values are to be keyed in the financial calculator ? Kindly explain the calculations

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Answer #1

EAR = (1 + 0.10/2)2 - 1 = 10.25%

Calculating Future Value,

Using TVM Calculation,

FV = [PV = 0, PMT = 100, N = 3, I = 0.1025]

FV = $247.59

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