n = 8 years * 12 months per year = 96
i = 0.045/12 = 0.00375
if you meant annuity due (instead of "annual due")...
FV annuity due = { PMT [((1 + i)n - 1) / i] } * (1 + i)
= {480[(1.00375^96) - 1) / 0.00375] * 1.00375
= {480[0.43236 / 0.00375]} * 1.00375
= {480(115.29724)} * 1.00375
= 55,342.67573 * 1.00375....(notice that HollyB's # is the first number in this line, that's the value of an ordinary annuity - e.g. pmts made at the end of each month, whereas an annuity due involves pmts made at the beginning of each month, so one more month accrues - hence the " * 1.00375 ", where * = multiply)
= $55,550.21
i get $55,342.675 not rounded...
Paul's company will match him dollar-for-dollar up to 6% of his monthly salary to invest into an annuity. Paul makes $4,000 per month and invest the full 6% of his salary plus the company's matching fund. In 8 years, what will be the future value of an annual due, if the. Annuity is at 4.5% annual interest compounded monthly? Please help me I'm desperate!
