# SOLUTION: What is the furture value of a 5-year annuity due that promises to pay you \$300 each year? Assume that all payments are reinvested at 7% a year, until year 5. I am so frustrat

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 Question 92296: What is the furture value of a 5-year annuity due that promises to pay you \$300 each year? Assume that all payments are reinvested at 7% a year, until year 5. I am so frustrated with this. I have come up with too many different figures to the point I am now confused. Please help. Answer by stanbon(57984)   (Show Source): You can put this solution on YOUR website!What is the furture value of a 5-year annuity due that promises to pay you \$300 each year? Assume that all payments are reinvested at 7% a year, until year 5. -------------- Future Value = R[(1+i)^n -1]/[i} R = periodic payment i = periodic interest rate n = number of payments ----------------------------------- FV = (300)[(1+0.07)^5 -1]/[0.07] FV = (300)[0.402551731/0.07 FV = \$1725.22 ================== Cheers, Stan H.