1. Calculating the Future Value of Annuities using the Future value of Ordinary Annuity Formula:
Where, C= Periodic Payments = $950
r = Periodic Interest rate = 0.095
n= no of periods = 40
Future Value = $ 367193.99
So, Answer is Option D
2. Calculating the Future Value of Annuities using the Future value of Annuity Due Formula:
Where, C= Periodic Payments = $950
r = Periodic Interest rate = 0.095
n= no of periods = 40
Future Value = $ 402,077.42
So, Answer is Option D
3. Calculating the Present Value of Annuities using the Present value of Ordinary Annuity Formula:
Where, C= Periodic Payments = $950
r = Periodic Interest rate = 0.095
n= no of periods = 40
Present Value = $ 9734.88
So, Answer is Option B
4. Calculating the Present Value of Annuities using the Present value of Annuity Due Formula:
Where, C= Periodic Payments = $950
r = Periodic Interest rate = 0.095
n= no of periods = 40
Present Value = $ 10659.70
So, Answer is Option B
If you need any clarification, you can ask in comments.
If you like my answer, then please up-vote as it will be motivating
Cla: Checked Annuities (PV and FV) Annual Amount Deposited 950 Annual Interest Rate Deposits are made...