Answer: The future value of an annuity due with a monthly payment of $300 at 6% interest compounded monthly for 10 years can be calculated using the formula:
FV = PMT * ( ( (1 + r)^n - 1) / r) * (1 + r)
where PMT = $300, r = 6%/12 = 0.05, and n = 10 years * 12 months/year = 120 months.
Substituting these values into the formula, we get:
FV = $300 * ( ( (1 + 0.05)^120 - 1) / 0.05) * (1 + 0.05)
FV = $300 * ( ( 1.05^120 - 1) / 0.05) * 1.05
FV = $300 * ( ( 2.704813829421526 - 1) / 0.05) * 1.05
FV = $300 * ( 1.704813829421526 / 0.05) * 1.05
FV = $300 * 34.09627658843153 * 1.05
FV = $52,113.63
Therefore, the future value of the annuity due is $52,113.63.
Explanation: