{"id":49409,"date":"2025-12-08T14:13:00","date_gmt":"2025-12-08T14:13:00","guid":{"rendered":"https:\/\/certifeka-edu.com\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-5-example-6\/"},"modified":"2025-12-08T14:13:00","modified_gmt":"2025-12-08T14:13:00","slug":"lesson-5-example-6","status":"publish","type":"lesson","link":"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-5-example-6\/","title":{"rendered":"Lesson 5: Example"},"content":{"rendered":"

\"\"<\/p>\n

Lesson 5 Due annuities time value<\/h2>\n

Example<\/h3>\n

Recall from an earlier example, illustrated in example (1) , that Fran Abrams wanted to choose between an ordinary annuity and an annuity due, both offering similar terms except for the timing of cash flows. We now will calculate the future value of the annuity due.<\/h5>\n
Fran Abrams wishes to determine how much money she will have at the end of 5 years if she chooses annuity B, the annuity. She will deposit $1,000 annually, at the end of each of the next 5 years into a saving account with 7% annual interest. This situation is depicted in the following timeline.<\/h5>\n

\"\"<\/p>\n

Answer from applying equation: $6153.29<\/h5>\n
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