Question

At the beginning of each year, Bill Ross invests $1,400 semi-annually at 8 percent for 9 years. The cash value of the annuity due at the end of the ninth year is:

Answer 1

Ok, so I haven't done this stuff in forever, but most formulas I found give this:

\[\huge V_{\text{future}}=\frac{P}{m}\left(\frac{(1+i/m)^{mt}-1}{i/m}\right)\]

Where
\(V_{\text{future}}\) = The future value of your investment
i = interest rate (as a PERCENT 7% = 0.07, etc.)
m = compounding rate (annually m = 1, semi-annually m = 2, quarterly m=4, etc.)
t = time, in YEARS

So you wanna find the future value of your investment given...
P = 1,400
i = 0.08
m = 2
t = 9

Hope this helps! :D

Answer 2

I'm assuming QUITE A BIT HERE. I don't know how your text defines these things, so check your text, ask your prof if this is the correct formula (the letters might be changed, but the relationship between the variables should remain the same). Also, I don't teach, nor have I ever taught finance, I just looked at a bunch of pages after search Annuities online just now and this is the formula which seemed to appear everywhere.