Investing $13,000 for each of eight years in an annuity due with a 6% interest rate,...

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Investing $13,000 for each of eight years in an annuity due with a 6% interest rate,...

Investing $13,000 for each of eight years in an annuity due with a 6% interest rate, the value at the end will be: ____________________________________________

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Answer 1

Answer #1

Ans $ 136,387.11

P =	Periodic payments
r =	rate of interest
n =	no of years

Future Value of Annuity Due =	(1 + r) * P ( (1 + r)ⁿ - 1 ) / r
	(1 + 6%) * 13000 * ((1 + 6%)^8 - 1) / (6%)
	136387.11

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Answer 2

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