SOLUTION: Please Help: Find the future value of the annuity due. Payments of $2500 made at the beginning of each semiannual period for 11 years at 7% compounded semiannually A) $42,221

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Question 201919: Please Help:
Find the future value of the annuity due.
Payments of $2500 made at the beginning of each semiannual period for 11 years at 7% compounded semiannually
A) $42,221.13
B) $73,173.68
C) $78,322.26
D) $83,651.03
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
This formula is for payments being made at end of compounding period, multiply answer by (1+i0 to find FV when payment is made at the beginning of compounding period.
FV=P/i
FV=2500/.035=2828.75/.035=80821.43
80821.43*1.035=$83651.03
when using numbers like these there is always some rounding error.