Homework Soursehttpimgurcom4003HEv Question is in the link Thanks SolutionF
http://imgur.com/4003HEv
Question is in the link. Thanks :)
Solution
For an annuity due,
FV = A [(1+i)^n - 1] / d
where
i = 0.08
d = i/(1+i) = 0.074074074
Thus, as n = 17 payments,
FV(t = 17) = A [(1+i)^n - 1] / d
= 13000*((1+0.08)^17 - 1)/0.074074074
= 473853.1691
This is the amount after 17 years. Compounding this for 14 years at 0.09 semiannually,
FV(t = 31) = 473853.1691*(1+0.09/2)^(2*14)
= 1625174.211 [ANSWER]
![http://imgur.com/4003HEv Question is in the link. Thanks :)SolutionFor an annuity due, FV = A [(1+i)^n - 1] / d where i = 0.08 d = i/(1+i) = 0.074074074 Thus, a](/WebImages/32/httpimgurcom4003hev-question-is-in-the-link-thanks-solutionf-1091163-1761574583-0.webp "http://imgur.com/4003HEv Question is in the link. Thanks :)SolutionFor an annuity due, FV = A [(1+i)^n - 1] / d where i = 0.08 d = i/(1+i) = 0.074074074 Thus, a")
