RatedrillAnnuity due: deposits at the start
A time value of money problem from Ratedrill. Solve it with one answer box, with fresh numbers on every attempt and the formula, calculator keystrokes and Excel version in the worked answer, and it is checked the moment you submit.
The task
You put $1,000 into a retirement account at the start of every year for 35 years. It earns 4.25% per year. What is the balance at the end of year 35?
What this problem teaches
The formula: FV(due) = PMT × ((1 + r)^n - 1) / r × (1 + r). Set P/Y = C/Y = 1, so I/Y is the rate per period. Cash you pay out is negative and cash you receive is positive. Switch back to END afterwards.
A hint if you get stuck
Annuity due: compute the ordinary annuity future value, then multiply by (1 + r), or switch the calculator to BGN.
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