Question

Find the future value for the annuity due with the given rate.Payments of $700 for 9 years at 0.31% compounded annuallyThe future value of the annuity due is $0.(Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 1

Future value of annuity due is calculated using

$\text{FVA due = }\frac{P\text{ }\times\lbrack(1+r)^n\text{ - 1\rbrack }\times\text{ ( 1 + r)}}{r}$

From the question, we are given

$\begin{gathered} P\text{ =\ 700} \\ r\text{ = 0.31\%} \\ n\text{ = 9 years} \end{gathered}$

Hence,

Future Vlaue of annuity due will be

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