Question

# What is the future value of 20 periodic payments of \$4,720 each made at the beginning...

What is the future value of 20 periodic payments of \$4,720 each made at the beginning of each period and compounded at 8%? What is the present value of \$3,440 to be received at the beginning of each of 28 periods, discounted at 5% compound interest? What is the future value of 16 deposits of \$2,920 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 16th period.) What is the present value of 6 receipts of \$3,280 each received at the beginning of each period, discounted at 9% compounded interest? (Round factor values to 5 decimal places)

(1)
Future value of annuity due = annuity due x FVAF
= \$4720 x 49.42292
= \$233,276.18
where,
FVAF(8%, 20) = 49.42292

(2)

present value of annuity due = annuity due x PVAF
= \$3440 x 15.64303
= \$53812.02
where,
PVAF(5%, 28) = 15.64303

(3)

Future value of annuity due = annuity due x FVAF
= \$2920 x 39.54470
= \$115470.52
where,
FVAF(10%, 16) = 39.54470

(4)

present value of annuity due = annuity due x PVAF
= \$3280 x 4.88965
= \$16038.05
where,
PVAF(9%, 6) = 4.88965