Question

(a) calculate the future value of an annuity of RM100,000 made at the beginning of every...

(a) calculate the future value of an annuity of RM100,000 made at the beginning of every year for 10 year if the bank interest rate is 0.2%.

(b) calculate the future value of an annuity of RM100,000 made at the beginning of every year for 10 year if the bank interest rate is 0.25%.

Please help me and answer with formula.

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Answer #1

(a) Future value of annuity due

PMT = 100,000

n = 10

r = 0.2% = 0.002

The future value of the annuity due is RM1,011,066.264837

(b) The present value of the annuity due

PMT = 100,000

n = 10

r = 0.25% = 0.0025

The present value of the annuity due is RM988,852.356376

I hope this helps! Please upvote :-)

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