Question

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

$

Answer 1

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