Question

Find the future value of an annuty due of $900 each quarter for 8 years at 9%, compounded quarterly. (Round your answer to the nearest cent.) $ 45233.99 X Need Help? Head Master Talk to a Tutor

Answer 1

solution - Given that Rice Periodic payment, 2.900 8 - 9% 9% 4 : 2.25*180 100 0.0225 n = 8.5 * 4 = 34 Foomula :- Z z z payment a(ny) a poco 34 Pecluce value of Aneisy Duc: periodic payme Futute value of Annuity : 900x P6170.0225 }(1-0.005) (2•130849)-1 (10225) 0-022 I : 900* 0.0225 - 900 * 10130849 (ou love 0.0225 (1.0225) : 900*50.2599 76 (100225) | 46251.74 $16.951. 74) will be accumulated by the End of Peax five second Question با ما @ The given pooblem 95 an Estample of an as the payments are made at the beginning of the page ment periodo Annuity due

b The general Espoestion for present value of amuity due is as follows. * (**** '1-(itin DO An= R 5") cori whese An-pesent value of amily due R= payment at the beginning of posod H- R = 40,000 1. periodic vale La Cai 6.62% = 6.621- 3•31 -0.0331 100 n= numbes of periodo n=4.5*2 TOUCH- n=9 An- 10,000/- 1-010-937)° )(1+0.003) 0.033) 40.000/- 0.74597 200034597) (100331) 00(oad 0.49%) C1-6331) - 40.000 - 40.000 ( 7.6748) ( 1•0331) An ~ 317,15070 The amount needed to be invested is equal to poesent value ghon amily duc. Thus the amount reeded is 4317151.70

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