Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. annuity payments are assumed to come at the end of

Annuity payments are assumed to come at the end of each payment period (termed an...

60.1K

Verified Solution

Question

Finance

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due).

What is the future value of a 18-year annuity of $2,000 per period where payments come at the beginning of each period? The interest rate is 5 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n = 6 and i = 10 percent. Look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 6.716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Need to know answers for both a and b A. compare and contrast endochondral ossification with intramembranous...

Civil Engineering
1.2K views

Compare the three types of legal structure: proprietorship, partnership and corporation.

Biology
1.2K views

Which of the following is an example of alliteration O Dressy daffodils O Buzz crackle...

Physics
1.2K views

1 For a certain gas the ratio of specific heats is giver to be y...

Basic Math
1.2K views

Write the point 2 4 in parametric form using radians Parametric form r cos t...

Algebra
1.2K views

Which is the inverse of f x log 216 C 6216 A B 216 6...

Accounting
1.2K views

please help On January 2, 2021, Twilight Hospital purchased a $92,000 special...

Accounting
1.2K views

Aiello Inc. had the following inventory in fiscal year 2019. The company uses the LIFO...

Accounting
1.2K views

which of the following pieces of information is not required to implement the residual operating...

Finance
1.2K views

The Chinese company, Alibaba, is changing the way global business is conducted. This fast-growing B2B...

Finance
1.2K views

Explain how can distribute a shopping product using multichannel distribution system?

Finance
1.2K views

The current spot rate between the euro and dollar is 1.0987/$. The annual inflation rate...