Annuities - How To Calculate The Future Value of an Annuity Due

This finance video tutorial explains how to calculate the future value of an annuity due using a formula and using a step by step process. The future value of the account depends on the monthly or annual deposit, the number of years, and the rate at which interest is being credited to the account.
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[@TheOrganicChemistryTutor]

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[@nats50]

I think the right answer should be $6,948.58. It should be an ordinary annuity, not annuity due since it's at the end of the year payment.

[@dijik123]

I also think so

[@morrosuleyman2331]

Yes me too

[@thenamelessdemigod]

This just helped me with my ECO 304(Money & banking) homework thanks a lot
Business & Eco students unite

[@japinoysimplelife2775]

You don’t know how much your lesson helps me❤️
Thousands thank you.

[@thomas_teboho]

Thank you for this. I would like to see you tackle a problem where you have to calculate the the Interest rate when given everything else. That should be interesting.

[@Lukaspecial599]

Thank you for helping me with summer classes 🙏🏻🙏🏻🙏🏻🙏🏻

[@sundrienaidoo1366]

Hi. Thank you so much for your videos. Can you please make a video explaining the difference between ordinary annuity and annuity due and when to use which equation .

[@iqramalik2778]

second question says end of the year so it is ordinary annuity how can you solve this from annuity due formula?

[@Eco-zaki]

Thank you very much. I understand the concept very well.

[@marbles5590]

I hope you did review this video though. It says 'at the end of 5 years', so that should be ordinary annuity and not annuity due.

[@sundrienaidoo1366]

Hi. Thank you so much for your videos. Can you please make a video explain the difference between ordinary annuity and annuity due and when to use which equation .

[@canaltres5932]

Happy Eid everyone 😍😍
Study Hard and Enjoy your day💜🤍

[@kimgatnor988]

You are teaching better than my teachers here in my collage

[@kamogelonkitseng1679]

Thank you so much sir, your videos have helped me with my mathematics and chemistry, thank you sir. May you please make a video on SYMMETRY ELEMENTS AND OPERATIONS please..

[@natashakassie8867]

I just wanna know ,what did you study ? Cause how??😂 plug for everything. Thank you

[@johnllasaf2095]

Problem no. 1 is not an annuity due problem since it's not in the begginning of the year

[@HasanMahmud-fn7wq]

thanks for the clarification. i was a bit confused at first

[@tedmint3504]

Is this the same as general annuity?

[@noreldenzenky1527]

Sir this is an ordinary annuity or annuity due?

[@rinkashime0289]

how do you know that the second problem is annuity due?

[@tutstorial8474]

problem #1 just says
payment is each month
but didn't tell if it is to be paid at the beginning or end
why do we use annuity due formula?

[@Hopewefindourhope]

There are two annuity so you have to find future and present value of both(ordinary annuitie and annuity due.) So this is annuity due of fv. Taht is my best appreciate if you understand

[@jeynlozada2383]

How did u get (1.06)⁵-1/0.06= 5.63709???

[@arwellmosqueda3615]

Thank you!!!

[@mute_sparrow]

If we had the FV= 7,170.38 earlier and we don't know the interest rate. How to solve it then?

[@eunicentinyari1292]

Thank you so much

[@andrewanyday7803]

In The second example payment was going to be made at the end of a time period meaning it’s supposed to be an ordinary annuity so why did you you the formula for annuity due ?
Please explain.

[@awuradjoatakyi8563]

Very true

[@joebertcantillo6961]

I'm starting to fall in love with your voice. I have many videos of your lessons downloaded and I keep on watching them. BTW. thanks for all the effort.😍😘😘

[@thedemondevii883]

Thanks

[@lanceaguilar928]

You saved me ❤❤❤💕💓💘💓💕💖💘💖💗💕❤

[@levinashon22]

The questions wording is mixed up....the formula application in an Ordinary annuity and annuity due looks mixed up as well

[@wata_drag8910]

You are now my math tutor. Congratulations lol

[@SGR47]

I'd like to know how much money I'd have out of $800.000 after paying taxes, when I transfer all the money on my checking account.

[@dilshaniiresha9317]

I think this should be ordinary annuity. Bcz here mention end of each year.

[@bnm254]

I think so too. Think it was an honest mistake on his part?

[@koyacrab]

​@@bnm254 yess, also, do u think we should be using the r/n and nt instead of r and n? since its mentioned that karen deposits the amt EVERY MONTH. if not, why didnt we use the same logic in the prev qn and just convert the 5000 into yrs instead of using the r/n, nt formula...? pls help 😭

[@emmanuelopoku2587]

. A company wants to provide a retirement plan for the marketing manager who is aged 55
now. The plan will provide the manager with an annuity of GHS7,000 at the end of every
year for 15 years upon his retirement at the age of 65 years. The company is funding this plan
with an annuity at the beginning of the year for 10 years. If the rate of effective interest is
5%, what is the amount of installment the company should pay?

[@spinach7205]

Annuity 🙌

[@Hopewefindourhope]

Sir I don't think it is right the way you do to the cashflow. 100×12 nah I think you will just take 100. Prove me wrong because I have the book if I try to multiply 12 of the months. The answer of the book and my answer will not be same but when I just take 100 it is right answer according to the book

[@aussie7137]

so why are you calculating for a yearly interest rate when she deposits the money monthly? the interest rate should be .005.. does anyone else agree?

[@Julianamaex]

Isnt the first answer $62764.51 ???

[@user-yd4fl5jz4r]

Аccording to the terms of the task, Karen deposits $ 100 into an annuity every month, therefore, from first $ 100 she receives 6% per annum, from second $ 100 she receives 5.5% for 11 months, the third $ 100 5% for 10 months ets. .

[@sylvielombi4430]

i think you made a mistake in the equation, it's 100 not 1200

[@user-zq1yv9ii2p]

im confused tooo huhu🥲

[@webbyjunior8730]

Can I get your email

[@sylvielombi4430]

the answer should be 597.54

[@tayamanmutenheri9141]

yes he is confusing us

[@ajgamingph8450]

teti

[@noahlungu2193]

😂😂

[@sundrienaidoo1366]

Hi. Thank you so much for your videos. Can you please make a video explaining the difference between ordinary annuity and annuity due and when to use which equation .

[@Hopewefindourhope]

You ask to the teacher. But I would like to try my best.
ORDINARY ANNUITY is an annuity for which the cash flow occurs at the end of each period.
And annuity due it occurs at the beginning of each period. Hope this helps