Question

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 |

Answer #1

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.

Use the table below to answer the following question: Present
Value of an Annuity of 1 Future Value of an Annuity of 1 Period 3%
4% 6% 8% 3% 4% 6% 8% 3 2.8286 2.7751 2.6730 2.5771 3.0909 3.1216
3.1836 3.2464 4 3.7171 3.6299 3.4651 3.3121 4.1836 4.2465 4.3746
4.5061 5 4.5797 4.4518 4.2124 3.9927 5.3091 5.4163 5.6371 5.8666 6
5.4172 5.2421 4.9173 4.6229 6.4684 6.6330 6.9753 7.3359 7 6.2303
6.0021 5.5824 5.2064 7.6625 7.8983 8.3938 8.9228 8 7.0197 6.7327...

Question 1 Part A and B
Part Present and future value tables of $1 at 3% are presented
below:
N
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1
1.03000
0.97087
1.0000
0.97087
1.0300
1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909
1.97087
3
1.09273
0.91514
3.0909
2.82861
3.1836
2.91347
4
1.12551
0.88849
4.1836
3.71710
4.3091
3.82861
5
1.15927
0.86261
5.3091
4.57971
5.4684
4.71710
6
1.19405
0.83748
6.4684
5.41719
6.6625
5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923...

Use the table below to answer the following
question:
Present Value of an Annuity of 1
Future Value of an Annuity of 1
Period
3%
4%
6%
8%
3%
4%
6%
8%
3
2.8286
2.7751
2.6730
2.5771
3.0909
3.1216
3.1836
3.2464
4
3.7171
3.6299
3.4651
3.3121
4.1836
4.2465
4.3746
4.5061
5
4.5797
4.4518
4.2124
3.9927
5.3091
5.4163
5.6371
5.8666
6
5.4172
5.2421
4.9173
4.6229
6.4684
6.6330
6.9753
7.3359
7
6.2303
6.0021
5.5824
5.2064
7.6625
7.8983
8.3938
8.9228
8
7.0197
6.7327...

Present and future value tables of $1 at 3% are presented
below:
N
FV $1
PV $1
FVA $1
PVA $1
FVAD $1
PVAD $1
1
1.03000
0.97087
1.0000
0.97087
1.0300
1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909
1.97087
3
1.09273
0.91514
3.0909
2.82861
3.1836
2.91347
4
1.12551
0.88849
4.1836
3.71710
4.3091
3.82861
5
1.15927
0.86261
5.3091
4.57971
5.4684
4.71710
6
1.19405
0.83748
6.4684
5.41719
6.6625
5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923
6.41719
8
1.26677
0.78941
8.8923
7.01969
9.1591...

Present and future
value tables of $1 at 3% are presented below:
Micro Brewery borrows
$240,000 to be repaid in equal installments over a period of seven
years. The loan payments are semiannual with the first payment due
in six months, and interest is at 6%. What is the amount of each
payment?
--------------------------------------------------------------------------------------------------------
Present and future
value tables of $1 at 3% are presented below:
N
FV
$1
PV
$1
FVA
$1
PVA
$1
FVAD
$1
PVAD
$1
1...

7. Present and future value tables of $1 at
3% are presented below:
N
FV $1 PV $1 FVA $1
PVA $1 FVAD
$1
PVAD $1
1
1.030000
0.97087
1.0000
0.97087
1.0300 1.00000
2
1.06090
0.94260
2.0300
1.91347
2.0909 1.97087
3
1.09273
0.91514
3.0909
2.82861
3.1836 2.91347
4
1.12551
0.88849
4.1836
3.71710
4.3091 3.82861
5
1.15927
0.86261
5.3091
4.57971
5.4684 4.71710
6
1.19405
0.83748
6.4684
5.41719
6.6625 5.57971
7
1.22987
0.81309
7.6625
6.23028
7.8923 6.41719
8
1.26677
0.78941
8.8923
7.01969 ...

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