What is the future value of a 5 year annuity due that pays $6,400 every six...

What is the future value of a 5 year annuity due that pays $6,400 every six months if the appropriate interest rate is 6.7% compounded semiannually

Expert Solution

Future value of annuity is calculated using the FV function:

=FV(rate,nper,pmt,pv,type)

=FV(6.7%/2,5*2,-6400,,1)

=77060.35

Where,

rate is periodic rate,

nper is no of periods,

pmt is payment per period,

type denotes type of annuity, 1 is used for annuity due

jeff jeffy answered 2 years ago

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