Question

Each of the following situations is independent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided.)

Case	Present Value	Annuity	Future Value	Annual Interest Rate	Number of Years
A	$150,000	----	(i)	3%	7
B	(ii)	---	$150,000	4%	6
C	(III)	$3,000	----	2%	10
D	----	$4,000	(IV)	3%	20

Compute the missing amounts for (i) through (iv). (Round your answers to nearest hundred dollars.)

(i)

(ii)

(iii)

(iv)

Answer 1

Case A:

Present Value * FV of $1 (i%, n) = Future Value
$150,000 * FV of $1 (3%, 7) = Future Value
Future Value = $150,000 * 1.230
Future Value = $184,500

Case B:

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $150,000 * PV of $1 (4%, 6)
Present Value = $150,000 * 0.790
Present Value = $118,500

Case C:

Future Value = Annuity * FVA of $1 (i%, n)
Future Value = $3,000 * FVA of $1 (2%, 10)
Future Value = $3,000 * 10.950
Future Value = $32,850

Case D:

Future Value = Annuity * FVA of $1 (i%, n)
Future Value = $4,000 * FVA of $1 (3%, 20)
Future Value = $4,000 * 26.870
Future Value = $107,480