Question 1190335
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Apply the future value of annuity due formula (not the regular future value annuity).


The "due" is because each deposit is made at the beginning of the period. If the deposits were made at the end of the period, after the compounding gets a chance to happen, then we'd use a regular future value annuity formula.


The formula we use is
FV = P(1+i)*( (1+i)^n - 1 )/i


where,
FV = future value of the money after n periods
P = deposit per period
i = interest rate per period (in decimal form)
n = number of periods


We have the following items
P = 3000
i = 0.10/2 = 0.05
n = 2*12 = 24


So,
FV = P(1+i)*( (1+i)^n - 1 )/i
FV = 3000*(1+0.05)*( (1+0.05)^24 - 1 )/0.05
FV = 140,181.296453963
FV = <font color=red>$140,181.30</font>
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