Question

Find the future value (FV) of the annuity due. (Round your answer to the nearest cent.) $180 monthly payment, 6.25% interest, 11 years

Answer 1

The future value of the annuity due to the nearest cent is $2956.

Explanation:

Consider the provided information:

It is provided that monthly payment is $175, interest is 7% and time is 11 years.

The formula for the future value of the annuity due is:

Now, substitute P = 175, r = 0.07 and t = 11 in above formula.

Hence, the future value of the annuity due to the nearest cent is $2956.

Explanation: