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Future Value of Annuity versus Annuity Due

Future value: annuity versus annuity due

What's the future value of a 7 percent, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?

Solution Preview

Future value of an annuity can be calculated using the FV of annuity formula. It is given as

FV = ...

Solution Summary

The solution explains how to calculate the future value of an annuity

$2.19