Answer:

The table factor for the annuity due is found by adding one period to the number of periods of the annuity and then subtracting 1.00000 from the resulting table factor.

Answer:

To calculate future value (Amount) of an ordinary Annuity, use the following steps.

1. Calculate the interest rate per period for the annuity (nominal rate periods per year)

2. Determine the number of periods of the annuity (years periods per year)

3. From table 12-1, locate the ordinary annuity table factor at the intersection on the rate-per-period column and the number-of-period row.

4. Calculate the future value of the ordinary annuity.

Future value ordinary annuity table factor Annuity payment

(Ordinary annuity)

Here,

1. Number of periods of the annuity due for a total is

2. Interest rate per period is

.

3. The ordinary annuity table factor at the intersection of the rate column and the periods row is

.

4. Subtract

from the table factor:

Ordinary annuity table factor

Annuity due table factor.

5. Future value

Annuity due table factor

Annuity payment.

Therefore the required future value of the annuity due is

.

Answer:

The formula for calculating the future value of an ordinary annuity when using a calculator with an exponential function

, key is

.