Question

Determine the future value of $28,000 under each of the following sets of assumptions (FV of $1, PV of $1, FVA 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.):

Annual Rate Period Invested Interest Compounded i = n = Present Value Future Value
1. 12% 8 years Semiannually $28,000
2. 12% 5 years Quarterly $28,000
3. 36% 17 months Monthly $28,000

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TABLE 3 Future Value of an Ordinary Annuity of $1 EVA_ (1 + i) - 1 ni 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0%

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TABLE 5 Future Value of an Annuity Due of $1 (1+i) -11 FVAD - = *(1+i) wi 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5,5%

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Answer #1
Annual rate Period invested Interest compounded i= n= present value Future value
1 12% 8 years semiannually 6% 16 28000 71130
2 12% 5 years Quarterly 3% 20 28000 50571
3 36% 17 years Monthly 3% 17 28000 46280
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