Future and Present Value of an Annuity Due If you start making $100 monthly contributions today and continue them for five years,what is their future value if the compounding rate is 10 percent APR? What is the present value of this annuity?
A)$508.14, $487.74
B)$512.64, $491.80
C)$7,743.71, $4,706.53
D)$7,808.24, $4,745.78

Question

Quizplus · Accepted Answer

The future value of an annuity due is calculated using the formula for future value of an annuity due, which accounts for the additional compounding period. The present value is calculated using the present value formula for an annuity due. The correct calculations lead to the values in option D.

Future and Present Value of an Annuity Due If You