document.write( "Question 1138853: What is the future value of an annuity due of $5645 paid every six months for three years at a 6% annual interest compounded semiannually \n" ); document.write( "

Algebra.Com's Answer #756664 by ikleyn(52847) $\"\"$ $\"About$

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document.write( "It is a classic Annuity due saving plan. The general formula is \r\n" );
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document.write( "    FV = ,    (1)\r\n" );
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document.write( "where  FV is the future value of the account;  P is your annual payment (deposit); \r\n" );
document.write( "r is the annual percentage rate presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 2, in this case).\r\n" );
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document.write( "Under the given conditions, P = 5645;  r = 0.06/2;  n = 3*2 = 6.  So, according to the formula (1), \r\n" );
document.write( "you get at the end of the 6-th year\r\n" );
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document.write( "    FV =  = $37609.60.   ANSWER\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity and Annuity due saving plans, see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans\r
\n" ); document.write( "\n" ); document.write( "    - Annuity Due saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain EVERYTHING you need to know about this subject, in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons, you will be able to do similar calculations in semi-automatic mode.\r
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