Final answer:
To calculate the future value of an annuity due, you can use the formula FV = P * ((1 + r)^n - 1) / r. Based on the given information, the future value of the same annuity due is approximately $8,378.14.
Step-by-step explanation:
To calculate the future value of an annuity due, we can use the formula:
FV = P * ((1 + r)^n - 1) / r
Where: P is the periodic payment, r is the interest rate per period, n is the number of periods.
In this case, we know that the future value of an ordinary annuity is $7,100, the interest rate is 8.5 percent, and the number of periods is 7. We need to calculate the future value of the same annuity, but for an annuity due.
Let's calculate:
P = $7,100 * (8.5% / (1 + 8.5%)) ≈ $6585.05
FV = $6585.05 * ((1 + 8.5%)^7 - 1) / 8.5% ≈ $8,378.14
Therefore, the future value of the same annuity due is approximately $8,378.14.