3. What is the future value after 22 years of year-end deposits $250___ earning 3% 4....

Question

Question

3. What is the future value after 22 years of year-end deposits $__250_____ earning 3%

4. What is the future value in the preceding problem if deposits are year-beginning?

Put in excel with formulas

Answer 1

Answer #1

Future value of an ordinary annuity = C*[((1+r)^t-1)/r]
where C is the annuity payment that is 250.
r is the interest rate that is 3%.
t is the year that is 22.

Future value of an ordinary annuity = 250*[((1.03)^22-1)/.03]
Future value of an ordinary annuity = 250*[((1.916103-1)/.03]
Future value of an ordinary annuity = 250*[(.916103)/.03]
Future value of an ordinary annuity = 250*[30.53678]
Future value of an ordinary annuity = 7634.195.

3) The future value of the annuity is $7634.19.

Future value of the annuity due = Future value of ordinary annuity*(1+r)
r is the interest rate that is 3%.
Future value of the annuity due = 7634.195*(1.03)
Future value of the annuity due = 7634.195*(1.03)
Future value of the annuity due = 7863.221.

4) The future value of the annuity due is $7863.22.

Answer 2

Similar Homework Help Questions

Please show your work with the formulas written out. Please answer as if you can not...

Please show your work with the formulas written out. Please answer as if you can not use a calculator, or only use a four function calculator (because that is how I have to learn it). Do not just put down the calculator keystrokes I need to see every step and number to learn how to do it. 3. What is the future value after 22 years of year-end deposits $250 earning 3% 4. What is the future value in the...
What is the Future Value of $3,000 after 3 years earning interest at the rate of...

What is the Future Value of $3,000 after 3 years earning interest at the rate of 4.2% per year?
What is the accumulated value after 15 years of monthly deposits of $ 1500.00 earning interest...

What is the accumulated value after 15 years of monthly deposits of $ 1500.00 earning interest at 8% compounded monthly if the deposits are made at the beginning of each month? Select one: a. $513 102.31 b. $522 536.41 c. $518 507.23 d. $516 467.23 e. $519 075.73

What is the future value at the end of year 28 of depositing $5,000 today, $3,500 at the end of years 1, 2 and 3, $5,000...

What is the future value at the end of year 28 of depositing $5,000 today, $3,500 at the end of years 1, 2 and 3, $5,000 at the end of years 4, 5, 6 and 7 and $4,250 at the end of years 8, 9, 10, 11 and 12 into an account that pays 9.5% p.a.? (No deposits will be made into the account after year 12).
Without using excel 4) What is the future value at the end of year 13 of...

Without using excel 4) What is the future value at the end of year 13 of a series of deposits that starts at S6,000 in year 1 and shrinks by 7% per year for 13 years (last deposit occurs at the end of year 13)? The annual interest rate is 7% compounded annually
What is the future value at the end of year 13 of a series of deposits...

What is the future value at the end of year 13 of a series of deposits that starts at $6,000 in year 1 and shrinks by 7% per year for 13 years (last deposit occurs at the end of year 13)? The annual interest rate is 7% compounded annually

, determine the future value at the end of the final year if deposits are made...

, determine the future value at the end of the final year if deposits are made into an account paying annual interest of 12%, assuming that no Value of a mixed stream For the mixed stream of cash flows shown in the following table, withdrawals are made during the period and that the deposits are made: a. At the end of each year. b. At the beginning of each year. a. The future value at the end of the final...
Calculate the future value of $5,000 earning 7 percent after one year, assuming annual compounding. Now,...

Calculate the future value of $5,000 earning 7 percent after one year, assuming annual compounding. Now, calculate the future value of $5,000 earning 7 percent after 22 years. Click on the table icon to view the FIF table e after one year is S (Round to the nearest cent.)
What is the future worth of a series of equal year-end deposits of $3,500 for 11...

What is the future worth of a series of equal year-end deposits of $3,500 for 11 years in a savings account that earns 13% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? Click the icon to view the interest factors for discrete compounding when i = 13% per year. (a) The future worth of a series of equal year...

What is the future worth of a series of equal year-end deposits of $2.900 for 10...

What is the future worth of a series of equal year-end deposits of $2.900 for 10 years in a savings account that earns 7% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? Click the icon to view the interest factors for discrete compounding when i: 7% per year. (a) The future worth of a series of equal year-end deposits...

3. What is the future value after 22 years of year-end deposits $__250_____ earning 3% 4....