Question 54692: What is the future value of a 5 year annuity due that promises to pay you $300 each year? The rate of interest is 7 percent. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! What is the future value of a 5 year annuity due that promises to pay you $300 each year? The rate of interest is 7 percent.
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Formula:
S=R[(1+i)^n -1]/i
S=300[(1+0.07)^5 -1]/0.07
S=(300/0.07)[1.07^5 -1]
S=4285.71[0.40 ]
S=$1714.29
Cheers,
Stan H.
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