Question

# Using the appropriate interest table, answer the following questions. (Each case is independent of the others.)...

Using the appropriate interest table, answer the following questions. (Each case is independent of the others.)

What is the future value of 24 periodic payments of \$4,660 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

 The future value \$

What is the present value of \$2,600 to be received at the beginning of each of 30 periods, discounted at 5% compound interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

 The present value \$

What is the future value of 16 deposits of \$2,160 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 16th period.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

 The future value \$

What is the present value of 6 receipts of \$2,980 each received at the beginning of each period, discounted at 9% compounded interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

 The present value \$

Solution 1:

Future value = \$4,660 * Cumulative FV factor at 8% for 24 periods of annuity due

= \$4,660 * 72.10594 = \$336,014

Solution 2:

Present value = \$2,600 * Cumulative PV factor at 5% for 30 periods of annuity due

= \$2,600 * 16.14107 = \$41,967

Solution 3:

Future value = \$2,980 * Cumulative FV factor at 9% for 6 periods of annuity due

= \$2,160 * 39.5447 = \$85,417

Solution 4:

Present value = \$2,980 * Cumulative PV factor at 5% for 30 periods of annuity due

= \$2,980 * 4.88965 = \$14,571