Solutions For 2014 FASB Update Intermediate Accounting Chapter 6 Problem 6BE

Future value:

The ordinary annuity’s future value is the value of periodic cash flows of an equal amount, with the cash flows occurring at the completion of one time schedules in the upcoming date. The ordinary annuity’s future value is calculated as on the date of the last cash flow of annuity occurring. The formula for computing the same is as follows:

Here A = Annuity

n = Number of periods

r =Interest rate