What is the accumulated sum of the following stream of payments? $13,929 every year at the...

Question

Question

Answer 1

Answer #1

Future Value of an Annuity Due
= C[(1+i)^n-1]/i] (1+i)

Where,
c= Cash Flow per period
i = interest rate per period
n=number of period

= $13929[ (1+0.0817)^8 -1 /0.0817] * (1 +0.0817)

= $13929[ (1.0817)^8 -1 /0.0817] * 1.0817

= $13929[ (1.8744 -1 /0.0817] * 1.0817

= $1,61,249.54

Sum at 8th year = $161249.54


*Please upvote.*

Answer 2

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