Find the future value of the annuity due. Assume that interest is compounded annually, unless otherwise...

Question

Question

Answer 1

Answer #1

Answer: $6638.11

Calculations:

Annual rate = 4.6%,

So, Quarterly rate = 4.6% ÷ 4 = 1.15%.

Total number of periods = 7 years x 4 = 28 periods.

.

Future value of annuity

= Deposit amount x Future value annuity at 1.15% for 28 periods

= $200 x 33.19054

= $6638.11

Thus the option i) is correct answer and remaining given options are incorrect.

Answer 2

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