Engineering Board Exam Reviewer · Annuity Due and Deferred Annuity · hard
Find the future value of an annuity due of P3,000 per year for 4 years at 7% annual interest.
- P14,252.22
- P13,319.83
- P14,000.00
- P13,500.00
Answer
A. P14,252.22
Solution
FVdue=A·(1+i)n-1/i·(1+i)=3000·(1.07)4-1/0.07·1.07 P14,252.22.
More Annuity Due and Deferred Annuity questions
- Find the present value of an annuity due of P2,500 per year for 6 years at 8% annual interest.
- A deferred annuity of P4,000 per year for 5 years is to begin at the end of year 3. Find its present value (at time 0) at 6% annual…
- Find the accumulated value of an annuity due of P1,500 monthly for 2 years at 12% compounded monthly.
- A father saves P4,000 at the beginning of each year for 10 years, starting today, at 5% annual interest. Find the future value at the end…
- Given the same payment, rate, and number of periods, which has a higher present value: an ordinary annuity or an annuity due?