Please write out formula and steps by hand. 3. Given the following information, a. Annual annuity...

Question

Question

Please write out formula and steps by hand.

Answer 1

Answer #1

a.Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=$2500[(1.08)^10-1]/0.08

=$2500*14.48656247

=$36216.41(Approx).

b.Future value of annuity due=Future value of annuity*(1+interest rate)

=$36216.41*(1.08)

=$39113.72(Approx).

Answer 2

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