Question

Your answer is incorrect Click here to view factor tables What is the future value of 20 periodic payments of $5,160 euch macle at the beginning of each period and compounded at 8%? [Round factor values to 5 decimal places, es The futurn value $ e Textbook and Medis Your answer is incorrect Click here to view factor tables What is the present value of $2,900 to be received at the beginning of each of 29 periods, discounted at 5% compound Interest? Hound factor walues to 5 de mai places. 1 25124 and final answer to decimal places, eg 458,581. The present Value $ elextbook and Media Your answer is incorrect. Click here to view factor tables What is the future value of 16 depasits at $2,170 each made at the beginning of cach period and compounded at 10/22 (Future value as of the end of the 16th period.) Round factor values to decimal places 1.25124 and tral answer to decimal places, 2.4.58,581. The Lure values clextbook and Media Your wris incorrect Click here to view tacter tables What is the present value of receipts of $3 280 each received at the beginning of each period, discounted at 98 compounded interest? Rowoctor was to decimal place mal 458981 The present values c Textbook and Media

Answer 1

a. Future Value of $5,460 at the beginning of each period for 20 period.

Period AWN V 6 Future Value Factor of 8% 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 3.70002 3.99602 4.31570 4.66096 Payment each period 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 5460 Future Value 5896.80000 6368.54400 6878.02752 7428.26972 8022.53130 8664.33380 9357.48051 10106.07895 10914.56526 11787.73049 12730.74892 13749.20884 14849.14554 16037.07719 17320.04336 18705.64683 20202.09858 21818.26647 23563.72778 25448.82601 15 16 20 Future Value 269849

b. Present value of $2,900 to be received at the beginning of each period for 29 periods.

• Since amount is received at the beginning so we will calculate present value for 28 periods. As the number of period decrease by 1 if amount is received at the beginning.

Period Present Value Factor of 5% Amount received each period Present Value 0.95238 2900 2761.90476 0.90703 2900 2630.38549 0.86384 2900 2505.12904 0.82270 2900 2385.83718 0.78353 2900 2272.22588 0.74622 2900 2164.02465 0.71068 2900 2060.97586 0.67684 2900 1962.83415 0.64461 2900 1869.36586 0.61391 2900 1780.34844 0.58468 2900 1695.56994 0.55684 2900 1614.82851 0.53032 2900 1537.93192 0.50507 2900 1464.69706 0.48102 2900 1394.94958 0.45811 2900 1328.52341 0.43630 2900 1265.26039 0.41552 2900 1205.00990 0.39573 2900 1147.62848 0.37689 2900 1092.97950 0.35894 2900 1040.93286 0.34185 2900 991.36463 0.32557 2900 944.15679 0.31007 2900 899.19694 0.29530 2900 856.37804 0.28124 2900 815.59813 0.26785 2900 776.76013 0.25509 2900 739.77155 Present Value 43205 Total amount received = 43205+2900 = 46105

c. Future Value of $2,170 at the beginning of each period for 16 period.

Period Den Future Value Factor of 8% 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 2170 Future Value 2343.60000 2531.08800 2733.57504 2952.26104 3188.44193 3443.51728 3718.99866 4016.51856 4337.84004 4684.86724 5059.65662 5464.42915 5901.58349 6373.71016 6883.60698 7434.29554 10 11 12 13 14 15 16 Future Value 71068

d. Present value of $3,280 received at the beginning of each period for 6 periods.

• Since amount is received at the beginning so we will calculate present value for 5 periods. As the number of period decrease by 1 if amount is received at the beginning.

Receipts each period 3280 3280 Period Present Value Factor of 9% 1 0.91743 0.84168 0.77218 4 0.70843 5 0.64993 nmn Present Value 3009.17431 2760.71038 2532.76181 2323.63469 2131.77495 3280 3280 3280 Present Value 12758 Total Receipt = 12758 + 3280 =16038