Answer:
The Future value of annuity due of $800 per year at 12% for 5 years is $5,692.15
Explanation:
Annuity payment = P = $800 per year
Number of years = n = 5 years
Interest rate = r = 12% = 0.12
Use following formula to calulate the Future value of Annuity due.
Future value of annuity = ( 1+r) x P [((1+r)^n - 1) / r]
Future value of annuity = ( 1+0.12) x 800 [((1+0.12)^5 - 1) / 0.12]
Future value of annuity = $5,692.15
So,The Future value of annuity due of $800 per year at 12% for 5 years is $5,692.15
