Question 15 Jim Scott invested $5000 four times a year in an annuity due at New York Securities for a period of 4 years at an interest rate of 8% compounded quarterly. Using the
ordinary annuity table , calculate the total value of the annuity due at the end of the 4 -year period.
Ordinary annuity table: Compound sum of an annuity of $1 | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Period | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% |
1 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 | 1.0000 |
2 | 2.0200 | 2.0300 | 2.0400 | 2.0500 | 2.0600 | 2.0700 | 2.0800 | 2.0900 | 2.1000 | 2.1100 | 2.1200 |
3 | 3.0604 | 3.0909 | 3.1216 | 3.1525 | 3.1836 | 3.2149 | 3.2464 | 3.2781 | 3.3100 | 3.3421 | 3.3744 |
4 | 4.1216 | 4.1836 | 4.2465 | 4.3101 | 4.3746 | 4.4399 | 4.5061 | 4.5731 | 4.6410 | 4.7097 | 4.7793 |
5 | 5.2040 | 5.3091 | 5.4163 | 5.5256 | 5.6371 | 5.7507 | 5.8666 | 5.9847 | 6.1051 | 6.2278 | 6.3528 |
6 | 6.3081 | 6.4684 | 6.6330 | 6.8019 | 6.9753 | 7.1533 | 7.3359 | 7.5233 | 7.7156 | 7.9129 | 8.1152 |
7 | 7.4343 | 7.6625 | 7.8983 | 8.1420 | 8.3938 | 8.6540 | 8.9228 | 9.2004 | 9.4872 | 9.7833 | 10.0890 |
8 | 8.5829 | 8.8923 | 9.2142 | 9.5491 | 9.8975 | 10.2598 | 10.6366 | 11.0285 | 11.4359 | 11.8594 | 12.2997 |
9 | 9.7546 | 10.1591 | 10.5828 | 11.0265 | 11.4913 | 11.9780 | 12.4876 | 13.0210 | 13.5795 | 14.1640 | 14.7757 |
10 | 10.9497 | 11.4639 | 12.0061 | 12.5779 | 13.1808 | 13.8164 | 14.4866 | 15.1929 | 15.9374 | 16.7220 | 17.5487 |
11 | 12.1687 | 12.8078 | 13.4863 | 14.2068 | 14.9716 | 15.7836 | 16.6455 | 17.5603 | 18.5312 | 19.5614 | 20.6546 |
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