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    1busymaniam's Avatar
    1busymaniam Posts: 29, Reputation: 6
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    #1

    May 8, 2007, 08:33 AM
    another annuity
    Help . What is the future value of a 5 year annuity due that promises to pay you $300 each year ? Assume that all payments are reinvested at 7% a year , until year 5 .
    Thanks again in advance...
    aybusheva's Avatar
    aybusheva Posts: 1, Reputation: 1
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    #2

    Jun 14, 2009, 09:59 AM

    annuity due means that you get paid at the beginning of each year . You have to find the accum.value ,which is 300*((1,07)^5-1 / 0.07/1.07)= 1845.987
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