Engineering Board Exam Reviewer · Annuity Due and Deferred Annuity · hard
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 of year 10.
- P52,827.15
- P50,311.57
- P51,500.00
- P53,500.00
Answer
A. P52,827.15
Solution
FVord=4000· (1.05)10-10.05 50,311.57. FVdue=50311.57(1.05) P52,827.15.
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