An annuity pays ₱3,000 at the beginning of every year. What is the future value of this as of 18 years from now if the interest rate is 11% compounded annually?
Not positive, but I think
Ordinary annuity FV
FV = C ((1+i)n -1)/i yields $151187.81
Because annuity payments are made at the BEGINNING of the year, it is called "Annuity Due". So, to get the correct FV, you would simply multiply it by one extra period, or by: (1 + 0.11) =1.11. So, the FV =$151,187.81 * 1.11 = $167,818.47, which is the FV of this annuity due.
