Question

If you start making $120 monthly contributions today and continue them for five years, what’s their future value if the compounding rate is 9.50 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

What is the present value of this annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Answer 1

Calculating Future Value,

Using TVM Calculation,

FV = [PV = 0, PMT = 120, N = 60, I = 0.095/12]

FV = $9,170.67

Calculating Present Value,

Using TVM Calculation,

PV = [FV = 0, PMT = 120, N = 60, I = 0.095/12]

PV = $5,713.78