Question 57069: What is the future value of a 5 year annunity due that promiese to pay you $300 each year? Assume that all payments are reinvested at 7 Percent a year, until Year 5.
Please simply answer for me, I have a hard time with math, pleae show formula.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! What is the future value of a 5 year annunity due that promiese to pay you $300 each year? Assume that all payments are reinvested at 7 Percent a year, until Year 5.
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S=R[(i+1)^n-1]/i
S=300[0.07+1)^5 -1]/0.07
S=300[0.4]/0.07
S=$1714.29
Cheers,
Stan H.
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