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 \$4,890 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 \$enter the future value in dollars rounded to 0 decimal places

What is the present value of \$3,950 to be received at the beginning of each of 29 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 17 deposits of \$3,030 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 17th 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 \$enter the future value in dollars rounded to 0 decimal places

What is the present value of 6 receipts of \$2,810 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 \$enter the present value in dollars rounded to 0 decimal places

Solution 1:

Future value = \$4,890 * Cumulative FV factor at 8% for 24 periods of annuity due

= \$4,890 * 72.10594 = \$352,598

solution 2:

Present value = \$3,950 * Cumulative PV factor at 5% for 29 periods of annuity due

= \$3,950 * 15.89813 = \$62,798

Solution 3:

Future value = \$3,030 * Cumulative FV factor at 10% for 17 periods of annuity due

= \$3,030 * 44.59917 = \$135,135

solution 4:

Present value = \$2,810 * Cumulative PV factor at 9% for 6 periods of annuity due

= \$2,810 * 4.88965 = \$13,740

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