Calculate the value of the annuity due without a table (Do not round intermediate calculations. Round your answer to the nearest cent.)

ossidianaZ

ossidianaZ

Answered question

2021-10-02

Calculate the value of the annuity due without a table (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount of payment=3,100 Payment payable = Annually Years = 3 Interestrate=7 Valueofannuity=______

Answer & Explanation

Derrick

Derrick

Skilled2021-10-03Added 94 answers

Given: P=Periodic payment=3100
r=Interest rate=7%=0.07
n=Number of periods=3
The future value of an annuity is deremined using the formula: A=P(((1+r)n)1r) with P the periodic payment, r the periodic interest rate and n the number of payments.
A=P(((1+r)n)1r)=3100((((1+0.07)2)10.07)=9966.19
Thus the value of the annuity is $9966.19

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