Final answer:
To find the future value of an annuity due with payments of $37,000 and an annually compounded interest rate of 4% over 12 years, we can use the formula FV = PMT * [(1 + r)^n - 1] / r. Plugging in the values, the future value is approximately $566,775.95.
Step-by-step explanation:
To find the future value of an annuity due, we can use the formula:
FV = PMT * [(1 + r)^n - 1] / r
where FV is the future value, PMT is the payment amount, r is the interest rate, and n is the number of periods.
In this case, the payment amount is $37,000, the interest rate is 4%, and the number of periods is 12 years.
Plugging in these values into the formula, we get:
FV = 37000 * [(1 + 0.04)^12 - 1] / 0.04
Solving this equation, we find that the future value is approximately $566,775.95.