Question

Q Search this course CENGAGE MINDTAP Ch 05: End-of-Chapter Problems-LPK-Time Value of Money Attempts: Keep the Highest: 11. Problem 5.14 (Future Value of an Annuity) eBook Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $700 per year for 10 years at 6%. b. $350 per year for 5 years at 3%. c. $300 per year for 5 years at 0% d. Rewolk parts a, b, and cassuming they are annuities due Future value of $700 per year for 10 years at 6%:$ Future value of $350 per year for 5 years at 3%: 5 Future value of $300 per year for 5 years at 0%: $

Answer 1

rate positively ..

	Ans a)
	Computation of future value using financial calculator -
	PV		0
	PMT		-700
	I		6%
	N		10
	Compute FV	$9,226.56
	Ans =		$9,226.56
	Ans b)
	Computation of future value using financial calculator -
	PV		0
	PMT		-350
	I		3%
	N		5
	Compute FV	$1,858.20
	Ans =		$1,858.20
	Ans c)
	Computation of future value using financial calculator -
	PV		0
	PMT		-300
	I		0%
	N		5
	Compute FV	$1,500.00
	Ans =		$1,500.00
	Ans d)
	set the calculator at begin mode for each case
			a	b	c
	PV		0	0	0
	PMT		-700	-350	-300
	I		6%	3%	0%
	N		10	5	5
	Compute FV	$9,780.15	$1,913.94	$1,500.00
	Ans =		$9,780.15	$1,913.94	$1,500.00