What is the future value of 24 periodic payments of $5,070 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e. g. 1.25124 and final answer to 0 decimal places, e. g. 458,581.)

Future Value = $365,577.12

Explanation:

Giving the following information:

n = 24 years

i = 8%

Annual payments = $5,070

Because the payments are made at the beginning of the year, we need to include an additional interest period. We will use the following formula:

FV = {A*[ (1+i) ^n-1]}/i + {[A * (1+i) ^n]-A}

FV = {5,070*[ (1.08^24) - 1]} / 0.08 + {[5,070 * (1.08^24) ] - 5,070}

FV = 338,497.33 + 27,079.79

FV = $365,577.12