Find the future value of the following annuity due. Assume that interest is compounded annually, there are n payments of R dollars, and the interest rate is i. R = 16000, i = .06, n = 5
Added by Sara M.
Step 1
Using the formula for future value of a single payment: FV = R x (1 + i)^n FV = 16000 x (1 + 0.06)^5 FV = 16000 x 1.3382 FV = 21,491.20 So, the future value of a single payment of R dollars at the end of 5 years with an interest rate of 6% is $21,491.20. Show more…
Show all steps
Close
Your feedback will help us improve your experience
Julie Silva and 92 other Precalculus educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Find the future value of the following annuity due. Assume that interest is compounded annually, there are n payments of R dollars, and the interest rate is i. R = 17,000; i = 0.03; n = 5 The future value of the annuity due is $BLANK. (Round to the nearest cent as needed.)
Sri K.
Find the future value of each annuity due. Assume that interest is compounded annually. $$R=4000 ; \quad i=0.06 ; \quad n=11$$
Mathematics of Finance
Future Value of an Annuity
Find the future value of each annuity due. Assume that interest is compounded annually. $$R=600 ; \quad i=0.06 ; \quad n=8$$
Recommended Textbooks
Precalculus with Limits
Precalculus
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD