The future value of a $2,000 annuity due deposited at 8 percent compounded annually for each of next 10 years is: (Round to the nearest whole dollar)
A) $28,974
B) $31,291
C) $14,494
D) $13,420

Question

Quizplus · Accepted Answer

FV = PMT × 11ea7fdb_fc17_ba2b_a768_531d4f2140f1_TB2902_11 × 11ea7fdb_fc17_ba2c_a768_71ca4de8a3e1_TB2902_11 FV = 2,000 × 11ea7fdb_fc17_ba2d_a768_89743e4c792b_TB2902_11 × 11ea7fdb_fc17_ba2e_a768_bb6ddc4e235a_TB2902_11 = $31,290.97
Using a financial calculator:
N = 10, I/Y = 8, PV = 0, PMT = -2,000, cpt FV = 28,973.12
28,973.12 × 1.08 = $31,290.97

The Future Value of a $2,000 Annuity Due Deposited at 8