The future value of a $10,000 annuity due deposited at 12 percent compounded annually for each of the next 5 years is ________.
A)$36,050
B)$63,528
C)$40,376
D)$71,152

Question

Quizplus · Accepted Answer

An annuity due means payments are made at the beginning of each period. The future value of an annuity due can be calculated using the formula: FV = Pmt * [(1 + r)^n - 1] * (1 + r) / r. Plugging in the values: Pmt = $10,000, r = 0.12, n = 5, the future value is approximately $71,152.

The Future Value of a $10,000 Annuity Due Deposited at 12