Question

Check my work Exercise 5-13 (Algo) Solving for unknowns; annuities (LO5-9) points For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n= number of years) (FV of $1. PV of $1, EVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Skipped Present Value 8% eBook Annuity Amount 3.400 120,000 140,000 80,193 435,588 746,890 570,000 215,000 10% Print 10% References

Answer 1

	Sl. No.	Present value	Annuity Amount	I =	n=
	1	13,575	3,400	8%	5
	2	435,588	120,000	4%	4
	3	746,890	140,000	10%	8
	4	570,000	80,193	5%	9
	5	215,000	67,826	10%	4
	1	3400*3.99271	= 13,575			8%
					1	0.92593
					2	0.85734
					3	0.79383
					4	0.73503
					5	0.68058
						3.99271
	2	PVAF(x%,4 years)*120,000 = 435,588			From the table	4%
		PVAF(x%,4 years) = 435,588/120,000			1	0.961534
		PVAF(x%, 4 years) = 3.6299			2	0.924547
		Hence, x% = 4%			3	0.888983
					4	0.854788
						3.6299
	3	PVAF(10%, x years)*140,000 = 746,890			From the table	10%
		PVAF(10%, x years) = 746,890/140,000			1	0.909091
		PVAF(10%, x years) = 5.33492			2	0.826446
		Hence x years = 8 years			3	0.751315
					4	0.683013
					5	0.620921
					6	0.564474
					7	0.513158
					8	0.466507
						5.3349
	4	PVAF(x%,9 years)*80,193 = 570,000			From the table	5%
		PVAF(x%,9 years) = 570,000/80,193			1	0.9524
		PVAF(x%, 9 years) = 7.10785			2	0.9070
		Hence, x% = 5%			3	0.8638
					4	0.8227
					5	0.7835
					6	0.7462
					7	0.7107
					8	0.6769
					9	0.6446
						7.1080
	5	Annuity amount = 215,000/3.1699			From the table	10%
		Annuity amount = $ 67,826			1	0.9091
					2	0.8264
					3	0.7513
					4	0.6830
						3.1699