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{ }*\lbrack(1+r)^n\text{ - 1\rbrack }*\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