Question

What is the accumulated sum of each of the following streams of​ payments?

a. ​$520 a year for 9 years compounded annually at 9 percent.

b. ​$108 a year for 7 years compounded annually at 8 percent.

c. ​$38 a year for 13 years compounded annually at 11 percent.

d. ​$25 a year for 4 years compounded annually at 5 percent.

a. What is the accumulated sum of ​$520 a year for 9 years compounded annually at 9 ​percent? ​$ nothing  ​(Round to the nearest​ cent.)

b. What is the accumulated sum of ​$108 a year for 7 years compounded annually at 8 ​percent? ​$ nothing  ​(Round to the nearest​ cent.)

c. What is the accumulated sum of ​$38 a year for 13 years compounded annually at 11​percent? ​$ nothing  ​(Round to the nearest​ cent.)

d. What is the accumulated sum of ​$25 a year for 4 years compounded annually at 5 ​percent?

Answer 1

a) 520 * Future Value annuity factor 9 %, 9 Years

520 * 13.02 = 6770.94

Alternatively

Year	Cash Flow	Invested For (Years)	Future Value Factor @ 9%	Future Value
1	520	8	1.99	1,036.13
2	520	7	1.83	950.58
3	520	6	1.68	872.09
4	520	5	1.54	800.08
5	520	4	1.41	734.02
6	520	3	1.30	673.42
7	520	2	1.19	617.81
8	520	1	1.09	566.80
9	520	0	1.00	520.00
			4.57	6,770.94

b) 108 * Future Value annuity factor 8%, 7 Years

108 * 8.92 = 963.66

c) 38 * Future Value annuity factor 11%, 13 Years

38 * 26.21 = 996.04

d) 25 * Future Value annuity factor 5%, 4 Years

25 * 4.31 = 107.75