Question

a. Find the future value of the ordinary annuity. (Round your answer to the nearest cent.) $120 monthly payment, 5.5% interest, 1 year

b. Find the future value (FV) of the annuity due. (Round your answer to the nearest cent.) $170 monthly payment, 6% interest, 14 years

Answer #1

Answer a)

Future Value =

where r is the rate of Return for compounding period = 5.5% /12 = 0.45833333333%

n is the no of compounding period 12 months

=

= 120 * 12.3071695267

**= $1,476.86**

Answer b)

Future Value =

where r is the rate of Return for compounding period = 6% /12 = 0.5%

n is the no of compounding period 14 years *12 months = 168 months

=

=

**= 170 * 263.616289894**

**= $ 44,814.77**

1.Find the present value of the following ordinary annuities.
Round your answer to the nearest cent.
Amount per Payment
Payment at End of Each
Time (Years)
Rate of Investment
Present Value
$3,300
6 months
8
12%
$
2. Find the amount of the following annuities due and interest
earned. Round your answer to the nearest cent.
Amount of
Each Deposit
Period
Rate
Time
(Years)
Amount of
Annuity
$7,500
quarterly
8%
8
$
3.Find the amount of each payment needed to...

Find the present value of the ordinary annuity. Round the answer to
the nearest cent.
Payments of $53 made quartely for 10 years at 8% compounded
quartely.

Use Table 12-1 to calculate the future value (in $) of the
annuity due. (Round your answer to the nearest cent.) Annuity
Payment Payment Frequency Time Period (years) Nominal Rate (%)
Interest Compounded Future Value of the Annuity $90 every month
Annuity
PaymentPayment
FrequencyTime
Period (years)Nominal
Rate (%)Interest
CompoundedFuture Value
of the Annuity$90 every month for payment every month for 1.5 years
at 6% interest compounded monthly = future value of the annuity

Future value: annuity versus annuity due
What's the future value of a 8%, 5-year ordinary annuity that
pays $600 each year? Round your answer to the nearest cent.
If this was an annuity due, what would its future value be?
Round your answer to the nearest cent.

Future Value: Ordinary Annuity versus Annuity
Due
What is the future value of a 7%, 5-year ordinary annuity that
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your answer to the nearest cent.
$
If this were an annuity due, what would its future value be? Do
not round intermediate calculations. Round your answer to the
nearest cent.
$

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quarterly. (Round your answer to the nearest cent.)

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answer to the nearest cent.
$
If this was an annuity due,
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$

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made in the amount R and interest is compounded as given. Then
determine how much of this value is from contributions and how much
is from interest
R=9200, 6% interest compounded semiannually for 7 years.
The future value of the ordinary annuity is $____?
Round to the nearest cent as needed
The amount from contributions is $___? and the amount from
interest is $___?
Round to the nearest cent...

FUTURE VALUE OF AN ANNUITY
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annuities. Compounding occurs once a year. Round your answers
to the nearest cent.
$700 per year for 8 years at 12%.
$
$350 per year for 4 years at 6%.
$
$700 per year for 10 years at 0%.
$
Rework previous parts assuming that they are annuities
due. Round your answers to the nearest cent.
$700 per year for 8 years at 12%.
$
$350 per year...

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