What is the future value on the day of the last deposit of 25 annual deposits...

What is the future value on the day of the last deposit of 25 annual deposits of $750 per year (first deposit to be made today) given an interest rate of 5.5% p.a?

Expert Solution

Future value of annuity due=(1+rate)*Annuity[(1+rate)^time period-1]/rate

=1.055*750*[(1.055)^25-1]/0.055

=750*53.9659806

=$40474.49(Approx)

jeff jeffy answered 2 years ago

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