What is the value of an annuity due at the end of 15 years of quarterly deposits of $2,000.00 with terms of 8 percent compounded quarterly? $228,102.00 $228,120.00 $232,665.14 $232,666.08

Explanations:

The formula for future value given

deposit amount, A = 2000

deposit interest, i = 8% annually = 8/4 = 2%, compounded quarterly

compounding period = quarterly

number of periods, n = 15 years = 4*15 = 60 periods (quarters)

The future value is given by:

FV = A * ((1+i) ^n-1) / i

= 2000 * (1.02^60/0.02)

= $228103.08 (rounded to the nearest cent).

The difference in the answer choice is probably due to the teacher's calculator does not have sufficient accuracy.