Answer to Question #316215 in Financial Math for Cherry

Question

The present value of an annuity is R62 543,42. The time under Consideration is 10 years and the applicable interest rate is 16% per year, compounded monthly. The future value of this annuity is

1. R162 612,89.

2. R1 333 517,61.

3. R306 521,61.

4. R581 913,00.

Answer 1

$F = P * ([1 + I]^{N - 1} )/I\\ F=62546.42(1+0.16)^{12-1}/0.16\\ F=306521.61\\ The \:correct\:answer\:is\:306521.61\\F=62546.42\frac{(1+0.16)^{11}} {0.16}\\ F=306521.61$