The formula of the future value of annuity due is A=p [(1+r/k)^(kn)-1)/(r/k)]×(1+r/k) A future value of annuity due P payment 125 R interest rate 0.0375 K compounded monthly 12 N time 8 years Solve for A A=125×(((1+0.0375÷12)^(12 ×8)−1)÷(0.0375÷12))×(1 +0.0375÷12) =14,012.75
