Find the future value of a 15-year annuity due with payments of $2,350 and an annual compound interest rate of 7.6%. The future value is $. (Round to the nearest cent.)
Find the future value of a 15-year annuity due with payments of $2,350 and an annual compound interest rate of 7.6%. The future value is $. (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Find the future value of a 15-year annuity due with payments of $2,350 and an annual compound interest rate of
7.6%.
The future value is $
(Round to the nearest cent.)
Expert Solution
Step 1
Future value refers to the accumulated sum based on a current deposit. If deposits are made periodically, then the same is referred to as the future value of the annuity. The time of deposit also plays an important role in the computation. The future value of the annuity due is applicable when deposits are made at the beginning of the period.
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