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). What is the future value of a 17-year annuity of $2,500 per period where payments come at the beginning of each period? The interest rate is 7 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 6.716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value Appendix C Future value of an annuity of $1, FVFA FV = A Period 1% 2% 3% 4% 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 3.030 3.060 3.091 3.122 4.060 4.122 4.184 4.246 5.101 5.204 5.309 5.416 6.152 6.308 6.468 6.633 7.214 7.434 7.662 7.898 8.286 8.583 8.892 9.214 9.369 9.755 10.159 10.583 10.462 10.950 11.464 12.006 11.567 12.169 12.808 13.486 12.683 13.412 14.192 15.026 13.809 14.680 15.618 16.627 14.947 15.974 17.086 18.292 16.097 17.293 18.599 20.024 17.258 18.639 20.157 21.825 18.430 19.615 20.811 22.841 25.117 22.019 24.297 26.870 20.012 21.762 23.698 21.412 23.414 25.645 27.671 29.778 28.243 32.030 36.459 41.646 40.588 47.575 56.085 34.785 48.886 60.402 75.401 95.026 64.463 84.579 112.80 152.67 1 ................ 2 THE 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 |(1 + i)" [(+)-1] HOR 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.539 33.066 47.727 66.439 120.80 209.35 Percent 6% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 25.673 28.213 30.906 33.760 36.786 54.865 79.058 154.76 290.34 7% 1.000 2.070 3.215 4.440 5.751 7.153 8.654 10.260 11.978 13.816 15.784 17.888 20.141 22.550 25.129 27.888 30.840 33.999 37.379 40.995 63.249 94.461 199.64 406.53 8% 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 73.106 113.28 259.06 573.77 9% 1.000 2.090 3.278 4.573 5.985 7.523 9.200 11.028 13.021 15.193 17.560 20.141 22.953 26.019 29.361 33.003 36.974 41.301 46.018 51,160 84.701 136.31 337.89 815.08 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.436 13.579 15.937 18.531 21.384 24.523 27.975 31.772 35.950 40.545 45.599 51.159 57.275 98.347 164.49 442.59 1,163.9 11% 1.000 2.110 3.342 4.710 6.228 7.913 9.783 11.859 14.164 16.722 19.561 22.713 26.212 30.095 34.405 39.190 44.501 50.396 56.939 64.203 114.41 199.02 581.83 1,668.8
