Find the present value of an annuity due that consists of monthly payments of $40 for three years, if the interest rate is 18% compounded monthly.

Ruth Peters wants to know how much she should invest today at 12% compounded monthly in order to receive monthly payments of $60 for the next two years.

Patricia Wiseman is 30 years old and she invests $2,000 in an annuity, earning 5% compounded annual return at the beginning of each period, for 18 years. What is the cash value of this annuity at the end of 18 years?

Show your complete solution. 1. Find the present value of an annuity due that consists of monthly payments of $40 for three years, if the interest rate is 18% compounded monthly. 2. Ruth Peters wants to know how much she should invest today at 12% compounded monthly in order to receive monthly payments of $60 for the next two years. 3. Patricia Wiseman is 30 years old and she invests $2,000 in an annuity, earning 5% compounded annual return at the beginning of each period, for 18 years. What is the cash value of this annuity at the end of 18 years