Question 1088298

#12: Find the payment that should be used for the annuity due whose future value is given. Assume the compounding period is the same as the payment period. $12,000; quarterly payments for 14 years; interest rate 7.2%
<pre>An ANNUITY DUE denotes payments being made at the BEGINNING of the period, as opposed to the end of the period.
Hence, payment to be made every BEGINNING-OF-QUARTER, for 14 years, at a QUARTERLY compounding rate of 7.2%: {{{highlight_green("$117.44")}}}
If payments were to be made every END-OF-QUARTER, for 14 years, at a QUARTERLY compounding rate of 7.2%, then each payment would be: $125.90.