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Amount of Each Deposit: $295

Deposited: Quarterly

Rate per Year: 10%

Number of Years: 6

Type of Annuity: Due

User Sainath
by
7.0k points

1 Answer

6 votes
Use the formula of the future value of annuity due
Fv=pmt [(1-r/k)^(kn)-1)÷(r/k)]×(1+r/k)
Fv=295×((((1+0.10÷4)^(4×6)−1)
÷(0.10÷4))×(1+0.10÷4))=9,781.54

if you want the present value
Pv=295×(((1−(1+0.10÷4)^(−4
×6))÷(0.10÷4))×(1+0.10÷4))
=5,407.97

Hope it helps
User Tengomucho
by
7.3k points