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17 January, 05:26

Ed Sloan invests $1,600 at the beginning of each year for eight years into an account that pays 10% compounded semiannually. The value of the annuity due is (use the tables in the handbook) :

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  1. 17 January, 06:37
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    FV=PV (r+1) ⁿ

    FV=Future value, or your amount of money you're going to have after 8 years.

    PV=Present value, or the amount of money you have just invested.

    APR=10

    FV=1,600 (10+1) ¹⁶

    FV=1,600 (11) ¹⁶

    FV=1,600 (176)

    FV=$281,600
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