Question

Phil had made $1200 deposits in an annuity due at the beginning of each quarter in an account earning 6% interest compounded quarterly. What is the future value of the account in 2years? pay attention this is Annuity due not ordinary annuity

ractice Tests






10271.20



$5,835.12


$5,991.53


$5,902.99

Answer 1

Formula and set up:

A = P(1 + r/n)^(nt)

You want A.

A = 1200(1 + (0.06)/2)^(0.06)(2)

Plug right side into calculator to find A.