What is the future value of an annuity due that pays $550 per year for 18 years? Use an annual interest rate of 8.00%.

Question

asked Dec 1, 2021 80.0k views

1 Answer

David Coster · Answer 1 · 2021-12-07T11:33:11+0000

Answer:

$22,245.44

Step-by-step explanation:

For computing the future value we need to apply the future value which is to be shown in the attachment below:

Provided that,

Present value = $0

Rate of interest = 8%

NPER = 18 years

PMT = $550

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after applying the above formula, the future value is $22,245.44