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Future and Present Value of an Annuity Due (LG6)
If you start making $130 monthly contributions today and continue them for five years, what’s their future value if the compounding rate is 9.25 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Future value annuity $
What is the present value of this annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Present value annuity $
I got Futrue value annuity as 9869.75
=130*((1+(9.25%/12))^(5*12)-1)/(9.25%/12)
and Present valus annuity as 6226.08
=130*(1-(1/(1+(9.25%/12))^(5*12)))/(9.25%/12)
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