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1. Gilda receives an annuity-due with a payment each month. The annuity has its first payment on her 12th birthday and the last payment is on her 16th birthday The amount of the payment is $100 times her age with no credit being given for fractions of a year. All the payments are deposited into an account earning interest at an annual effectiveinterst rate of5.82%. Find the accumulated value on her 18th birthday ,
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Answer #1

Accumualted vakue on 18th birthday=1200*(1.0582^6)+1300*(1.0582^5)+1400*(1.0582^4)+1500*(1.0582^3)+1600*(1.0582^2)=8734.516061

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