SOLUTION: We have used the formula A = R (1 + i)n − 1 i to find the future value of an ordinary annuity where payments are made at the end of each period. Another option allow

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Question 1127921: We have used the formula
A = R
(1 + i)n − 1
i
to find the future value of an ordinary annuity where payments are made at the end of each period. Another option allows the payments to be made at the beginning of each period. Such an annuity is called an annuity due. The future value of an annuity due at the end of n periods with periodic payments, R, at the beginning of each period is given by
A = R
(1 + i)n + 1 − (1 + i)
i
.
Find the future value of an annuity due with monthly payments of $40 for 36 months. The annual interest rate is 3.8%. (Round your final answer to two decimal places.)
Found 3 solutions by MathLover1, MathTherapy, ikleyn:
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
R=40.00
i=3.8%
n=36
Final value after n payments:

A+=+R%28%28%281+%2B+i%29%5En+-+1%29+%2F+i%29
A+=+40%28%28%281+%2B+0.038%29%5E36+-+1%29+%2F+0.038%29
A+=+40%28%28%281.038%29%5E36+-+1%29+%2F+0.038%29
A+=+40%28%283.82917+-+1%29+%2F+0.038%29
A+=+40%282.82917+%2F+0.038%29
A+=+2978.07


Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!
We have used the formula
A = R
(1 + i)n − 1
i
to find the future value of an ordinary annuity where payments are made at the end of each period. Another option allows the payments to be made at the beginning of each period. Such an annuity is called an annuity due. The future value of an annuity due at the end of n periods with periodic payments, R, at the beginning of each period is given by
A = R
(1 + i)n + 1 − (1 + i)
i
.
Find the future value of an annuity due with monthly payments of $40 for 36 months. The annual interest rate is 3.8%. (Round your final answer to two decimal places.)
Correct answer: highlight_green%28%22%241%2C527.56%22%29%29

IGNORE all non-similar answers!!



The other person couldn't be more WRONG, as the ORDINARY ANNUITY was calculated for 36 YEARS. 36 YEARS? And, isn't the question asking 

for ANNUITY DUE? I wish these people would leave these problems that they seem not to know anything about.

Answer by ikleyn(52803) About Me  (Show Source):