Find the future value of an annuity due of $1,700 each month for 4 years if the annual interest rate is 11%, compounded monthly. Round your answer to the nearest cent.
A)$21,657.31
B)$63,463.93
C)$136,419.89
D)$82,443.20
E)$102,859.77

Question

Find the future value of an annuity due of $1,700 each month for 4 years if the annual interest rate is 11%, compounded monthly. Round your answer to the nearest cent. ​
A)$21,657.31
B)$63,463.93
C)$136,419.89
D)$82,443.20
E)$102,859.77

Quizplus · Accepted Answer

The future value of an annuity due can be calculated using the formula FV = P * [(1 + r)^nt - 1] * (1 + r) / r, where P is the payment amount, r is the monthly interest rate, n is the number of compounding periods per year, and t is the number of years. Here, P = $1,700, r = 0.11/12, n = 12, and t = 4. Plugging these values into the formula gives the future value closest to $102,859.77.

Find the Future Value of an Annuity Due of $1,700