Question

Future Value of an Annuity for Various Compounding Periods Find the future values of the following ordinary annuities. FV of $200 each 6 months for 4 years at a nominal rate of 8%, compounded semiannually. Do not round intermediate calculations.

Round your answer to the nearest cent. $ 2127.33 **incorrect** why is this wrong?

FV of $100 each 3 months for 4 years at a nominal rate of 8%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $

Answer #1

Solution :- (1)

Semiannual Rate = 8% / 2 = 4%

Semiannual Deposit = $200

Total Semiannual Deposits = 4 * 2 = 8

Now the Future Value = Deposit * FVAF ( 4% , 8 )

= $200 * [ ( 1 + 0.04 )^{8} - 1 ] / 0.04

= $5,000 * 0.36857

= $1,842.85

Solution :- (2)

Quarterly Rate = 8% / 4 = 2%

Quarterly Deposit = $100

Total Semiannual Deposits = 4 * 4 = 16

Now the Future Value = Deposit * FVAF ( 2% , 16 )

= $100 * [ ( 1 + 0.02 )^{16} - 1 ] / 0.02

= $5,000 * 0.3728

= $1,863.93

If there is any doubt please ask in comments

Thank you please rate

Find the future values of the following ordinary annuities.
a. FV of $800 each 6 months for 5 years at a nominal rate of 8%,
compounded semiannually. Do not round intermediate calculations.
Round your answer to the nearest cent. $
b. FV of $400 each 3 months for 5 years at a nominal rate of 8%,
compounded quarterly. Do not round intermediate calculations. Round
your answer to the nearest cent. $

Find the future values of the following ordinary annuities: FV
of $200 paid each 6 months for 5 years at a nominal rate of 4%
compounded semiannually. Do not round intermediate calculations.
Round your answer to the nearest cent. $ FV of $100 paid each 3
months for 5 years at a nominal rate of 4% compounded quarterly. Do
not round intermediate calculations. Round your answer to the
nearest cent.

find the future values of the following ordinary annuities:
a) FV of $600 paid each 6 months for 5 years at a nominal rate
of 6% compounded semiannually. Do not round intermediate
calculations. Round your answer to the nearest cent.
b) FV of $300 paid each 3 months for 5 years at a nominal rate
of 6% compounded quarterly. do not round intermediate calculations.
round your answer to the nearest cent.
c) these annuities recieve the same amount of cash...

Find the future values of the following ordinary annuities:
FV of $200 paid each 6 months for 5 years at a nominal rate of
5% compounded semiannually. Do not round intermediate calculations.
Round your answer to the nearest cent.
$
FV of $100 paid each 3 months for 5 years at a nominal rate of
5% compounded quarterly. Do not round intermediate calculations.
Round your answer to the nearest cent.
$
These annuities receive the same amount of cash during...

Find the future values of the following ordinary annuities: FV
of $600 paid each 6 months for 5 years at a nominal rate of 13%
compounded semiannually. Round your answer to the nearest cent. $
FV of $300 paid each 3 months for 5 years at a nominal rate of 13%
compounded quarterly. Round your answer to the nearest cent. $
These annuities receive the same amount of cash during the 5-year
period and earn interest at the same nominal...

Find the future values of the following ordinary annuities.
FV of $400 each 6 months for 4 years at a nominal rate of 8%,
compounded semiannually.
FV of $200 each 3 months for 4 years at a nominal rate of 8%,
compounded quarterly.

Future Value for Various Compounding
Periods
Find the amount to which $575 will grow under each of the
following conditions. Do not round intermediate calculations. Round
your answers to the nearest cent.
12% compounded annually for 5 years.
$
12% compounded semiannually for 5 years.
$
12% compounded quarterly for 5 years.
$
12% compounded monthly for 5 years.
$

Future Value for Various Compounding
Periods
Find the amount to which $650 will grow under each of the
following conditions. Do not round intermediate calculations. Round
your answers to the nearest cent.
12% compounded annually for 5 years.
$
12% compounded semiannually for 5 years.
$
12% compounded quarterly for 5 years.
$
12% compounded monthly for 5 years.
$

Present Value for Various Compounding
Periods
Find the present value of $500 due in the future under each of
the following conditions. Do not round intermediate calculations.
Round your answers to the nearest cent.
9% nominal rate, semiannual compounding, discounted back 5
years.
$
9% nominal rate, quarterly compounding, discounted back 5
years.
$
9% nominal rate, monthly compounding, discounted back 1
year.
$

Present Value for Various Compounding
Periods
Find the present value of $775 due in the future under each of
the following conditions. Do not round intermediate calculations.
Round your answers to the nearest cent.
15% nominal rate, semiannual compounding, discounted back 5
years.
$
15% nominal rate, quarterly compounding, discounted back 5
years.
$
15% nominal rate, monthly compounding, discounted back 1
year.
$

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 7 minutes ago

asked 14 minutes ago

asked 14 minutes ago

asked 21 minutes ago

asked 40 minutes ago

asked 40 minutes ago

asked 44 minutes ago

asked 44 minutes ago

asked 47 minutes ago

asked 59 minutes ago

asked 1 hour ago