Question

Current Attempt in Progress Using the appropriate interest table answer each of the following questions. Each case is independent of the others.) (a) Click here to view factor tables What is the future value of $9,520 at the end of 5 periods at 8% compounded interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to decimal places, e.g. 458,581.) The future value $ eTextbook and Media Save for Later Attempts: 0 of 15 used Submit Answer (b) Click here to view factor tables What is the present value of $9,520 due 8 periods hence, discounted at 6%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value $

Answer 1

(a)

Future value of 1 (n=5, i=8%) = 1.46933

Future value = $9,520 * 1.46933

= $13,988

(b)

Present value of 1 (n=8, i=6%) = 0.62741

Present value = $9,520 * 0.62741

= $5,973

(c)

Future value of an ordinary annuity of 1 (n=17, i=10%) = 40.54470

Future value = $9,520 * 40.54470

= $385,986

(d)

Present value of an ordinary annuity of 1 (n=17, i=5%) = 10.37966

Present value = $9,520 * 11.27407

= $107,329