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You have decided to start saving money for your future. What is the future value of...

You have decided to start saving money for your future. What is the future value of a 10-year annuity of $10,000 per year, assuming that you make your first payment today and the interest rate is 8 percent?

future value: ???

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Answer #1

Future value of annuity due=(1+rate)*Annuity[(1+rate)^time period-1]/rate

=1.08*10,000[(1.08)^10-1]/0.08

=10,000*15.6454875

=$156454.87(Approx).

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