Question

value: 1.00 points 1000 1.000 2010 202030 2040 1.000 2.080 2 00 2.090 2.100 2.110 .342 3153 4000 122 14 4.24 4375 4 9.783 11.859 14.164 6.722 214 434 788 8266 .53 9214 9.200 98 10200 10.СО 11029 9209 9.756 10159 nsa3 1' 027 11491 11978 12 440 001 6142 4 959 8.604 11430 13.579 Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). 0 14947 17.086 27 975 29.30 What is the future value of a 13-year annuity of $3,000 per period where payments come at the beginning of each period? The interest rate is 11 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n = 6 and i = 10 percent. Look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 x 6.716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 7 379 40 018 228243 25 57 275 1.646 40588 9058 2120 2130 2.540 2100 Future value 5073 17.843 23.050 12300 12.757133 3727 14240 147735.3275002 6 49 7.519 332勾 320ss 20655 21.814 23.045 2434 25.733 27200 28.755 30.404 32150 42566 27 271 32 804 219 32320 53.739 105.93 55750 61,725 639 75836 8.141 93408 103,74 115.27 1281 63.440 70 68212 98.603 11029 72052 80047 0 02441538 3003 148.63 166.42186 21806 850 37 eBook & Resources 123.41 1381715474 25241 3608 31345 13.21 5429 73439 30,00 120,393.0 se ㅡ 2,4000 3,450.5 4994.5 1.217.7 36.0 150900 21.8130 31,515.0 45,407ฏิ 280,2560 1559,780 76709 10137 1320 1779.1

Answer 1

Formula method:

FV = C x PVIFAD (i, n)

C = Periodic cash flow = $ 3,000

i = Interest rate = 11 % p.a.

n = No. of periods = 13

FV = $ 3,000 x PVIFAD (11%, 13)

      = $ 3,000 x [PVIFA (11%, 14) – 1]

      = $ 3,000 x 30.095

      = $ 3,000 x 29.095

      = $ 87,285.00

Financial calculator method:

2 ND BGN (PMT)

2ND SET (ENTER)

2 ND QUIT (CPT)

2 NDP/Y 1 ENTER (↓)

C/Y 1 ENTER

2ND QUIT

1x 13 = 13     N

I/Y   11

0 PV

3000   +/- PMT

CPT FV = 87,284.75

[P/Y = No. of payment/year

C/Y = No. of compounding/year]