Please help me guys with these two problems. I don't know how to show work for both of them.

1 answer:

3 0

The answer to the first question is $5,975 and the answer to the second question is $2,030.
These problems solved using the future value of an annuity due formula by calculating the sum of a series payment at the beginning period through a specific amount of time. The formula of the future value of an annuity due is FV = C*(((1+i)^n - 1)/i)*(1+i), where FV is the future value, C is the payment for each period, n is the period of time, and i is the interest rate. Calculation for Question 1: FV = $1,000*(((1+6%)^(5)-1)/6%)*(1+6%) and calculation for Question 2: FV = $1,000*(((1+1%)^(2)-1)/1%)*(1+1%)

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