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 $4,890 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

Answer 1

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