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What is the value of an annuity due at the end of 15 years of quarterly deposits of $2,000.00 with terms of 8 percent compounded quarterly? $228,102.00 $228,120.00 $232,666.08 $232,665.14

User Zeppomedio
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2 Answers

4 votes

Answer:

$232,666.08

Explanation:

Use Table 14-1 to find the future value of a quarterly annuity due of $2,000 for 15 years at 8% annual interest compounded quarterly. (TV = 114.052)

15 years × 4 periods per year = 60 periods, 8% annual interest rate / 4 periods per year = 2% period interest rate (or 0.02)

Future value = annuity payment × table value × ( 1 + period interest rate )

FV = 2000 * 114.052 * (1 + 0.02) =

FV = 2000 * 114.052 * (1.02) = $232,666.08

User MKoosej
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5.6k points
5 votes
choice b) $232,666.08
User Gyuri Majercsik
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5.3k points
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