Question

Using the appropriate interest table, answer the following questions. (Each case is independent of the others.)

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What is the future value of 20 periodic payments of $4,720 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The future value

$enter the future value in dollars rounded to 0 decimal places

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What is the present value of $3,440 to be received at the beginning of each of 28 periods, discounted at 5% compound interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The present value

$enter the present value in dollars rounded to 0 decimal places

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What is the future value of 16 deposits of $2,920 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 16th period.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The future value

$enter the future value in dollars rounded to 0 decimal places

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What is the present value of 6 receipts of $3,280 each received at the beginning of each period, discounted at 9% compounded interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

The present value

$enter the present value in dollars rounded to 0 decimal places

Answer 1

Answer:

1) Future value = Annual payment * Future value annuity (8%, 20)
=4720*49.4229
=233276

2) Present value = Annual payment * Present value annuity (5%, 28)
=3440*15.6430
=53812

3) Future value = Annual payment * Future value annuity (10%,16)
=2920*39.5447
=115471

4) Present value = Annual payment * Present value annuity (9%, 6)
=3280*4.8897
=16038