Question

To compute the value of an annuity due, multiply the value of the ordinary annuity by .

You are planning to put $10,000 in the bank at the end of each year for the next eight years in hopes that you will have enough money for a trip around the world. If you are investing at an annual interest rate of 6%, how much money will you have at the end of eight years—rounded to the nearest whole dollar?

$98,975

$118,770

$79,180

$104,914

You’ve decided to deposit your money in the bank at the beginning of the year instead of the end of the year, but now you are making payments of $10,000 at an annual interest rate of 6%. How much money will you have available at the end of eight years—rounded to the nearest whole dollar?

$104,914

$98,975

$73,440

$146,880

Answer 1

D6 fFV(D1,D2,D3,D4,D5) 1 EndingRATE 2 Rate Per Period 0.06 Total No.of Payments NPER PMT PV TYPE FV 8.00 $10,000.00 0 0 4 蹥. Ending(O), Beginning(1) $98,975 FV(0.06,8,10000,0,0)) (-FV(rate,nper,pmt,pv,Type))