Find the future value of the following annuity due. Assume that interest is compounded annually, there...

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Find the future value of the following annuity due. Assume that interest is compounded annually, there...

Find the future value of the following annuity due. Assume that interest is compounded annually, there are n payments of R dollars, and the interest rate is i. R; 15,000 i; 0.03 n =8

business accounting

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Answer 1

Answer #1

Future value of annuity due=(1+rate)*Annuity[(1+rate)^time period-1]/rate

=1.03*15000*[(1.03)^8-1]/0.03

=15000*9.15910613

which is equal to

=$137386.59(Approx)

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Answer 2

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