This is all the information that was given to me. I don\'t know if they want pre

Question

This is all the information that was given to me. I don't know if they want present value or future value. This is all there was.

Complete the annuity due for the following. (Do not round intermediate calculations. Round your answer to the nearest cent.)

This is all the information that was given to me. I don't know if they want present value or future value. This is all there was.

Complete the annuity due for the following. (Do not round intermediate calculations. Round your answer to the nearest cent.)

Explanation / Answer

If the amount of $ 33,000 is Present Value , Annuity due = Present Value /Present value of annuity due = $       33,000 / 23.9377 = $   1,378.58 Working: Present value of annuity due = ((1-(1+i)^-n)/i)*(1+i) Where, = ((1-(1+0.02)^-32)/0.02)*(1+0.02) i 8%*3/12 = 0.02 = 23.937702 n 8*12/3 = 32 If the amount of $ 33,000 is Future Value , Annuity due = Future Value / Future Value of annuity due of 1 = $       33,000 / 45.11157 = $       731.52 Working: Future Value of annuity due of 1 = ((((1+i)^n)-1)/i)*(1+i) Where, = ((((1+0.02)^32)-1)/0.02)*(1+0.02) i 8%*3/12 = 0.02 = 45.11157 n 8*12/3 = 32

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