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 12-year annuity of $1,400 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 X 6.716). Fare Appendix Future value of an ammulty of St. FV, PV = + = Percent Period 9% 1000 2.090 3.278 4573 5.985 5.101 8.654 GRUND 1% 2% 3% 4% 5% 6% 1000 1000 1000 1000 1000 1000 2010 2020 2030 2040 2050 2060 3030 3060 3091 3.122 3.153 3.184 4.060 4.122 4.184 4.246 4310 4 325 53095416 5526 5.637 6.152 6.308 6.468 6633 6.802 6,975 7.214 7.434 7662 7.898 8.142 8.394 8.286 85838.892 9214 9549 9.897 9.369 9.755 10.159 10.583 11.027 11.491 10.462 10.950 11464 12006 12578 13.181 11.567 12 169 12 800 13.486 14207 14972 12.683 13.412 14.192 15.026 15.917 16.870 13800 14.680 15618 16.627 17.713 18.882 14947 15.974 17 086 18.292 19.599 21.015 16.097 17.293 1859920024 21 579 23.276 17 258 18.639 20.157 21825 23657 25673 18.430 20.012 21.762 23.598 25.840 28.213 19.615 21.412 23 414 25.645 28.132 30.906 20,811 22.841 25.117 27.671 30.539 33.760 22019 24 297 26870 29.778 31066 36786 28.243 32.030 36.459 41646 47.727 54.865 34 785 40 588 47525 56 085 66 439 79 058 48.886 60.402 75.40195.026 120.80 154.76 64.46384.579 11280 152.67 209 35 290.34 7% 8% 1000 1000 2.070 2.080 3.215 3.246 4.440 4.506 5.751 5.867 7.153 7.336 8923 10.260 10637 11.978 12.488 13816 14,487 15784 16.645 17.888 18.977 20141 21,495 22.550 24.215 25.129 27.152 27 838 30 324 30.840 33.750 33999 37.450 37.379 41.446 09 45 762 63.249 73.106 94.46111328 199.64 259,06 40653 573.77 9.200 11028 13.021 15.193 17.560 20.141 22.953 26.019 29.361 33003 36.974 41.301 46.018 51. 160 84,701 1 36.31 337.89 81508 10% 1000 2.100 3310 4.641 6 105 7.716 9.487 11436 13.579 15.937 18531 21384 24523 27.925 31772 35 950 40.545 45.599 51.159 52 275 98.347 164.49 4 4259 1.163.9 11% 1000 2.110 3.342 4.710 6228 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 1.6688 88% Appendix concluded) Future value of an annuity of $1 Period 30% 1.000 16% 1.000 2160 3.506 5.066 2.300 3606 7014 8.927 12 13% 14% 15% 1.000 1.000 1.000 1.000 2.120 2.130 2.140 2.150 3374 3.407 3440 3473 4.779 4.850 4.921 6353 6.480 6.610 6.742 8115 8.323 8536 8.754 10.089 10.405 10.730 11.067 12300 12.757 13233 13727 14776 15.416 16 095 16.786 17.549 18.420 19.337 20.304 20.655 21,814 23.045 24,349 24.133 25.650 27.271 29.002 28 029 29.985 32 089 34352 32 393 34.883 37.581 40.505 37 280 40.417 4384247580 42.753 46.672 50.980 55.717 48.884 53.739 59.118 65.075 55.750 61.725 68 394 75.836 63.440 70.749 78.969 88.212 72052 Th 7 01 025 1924 133.3315562 181.87 212.79 241.33 293.20 356.79 434.75 767,09 1,013. 7 1.342.0 1,779,1 2.400.0 3.459 5 4.994.5 7.217.7 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51 660 60.925 71.673 34.141 98.603 1933 249 21 530 31 2,360.8 10,436.0 Percent 17% 18% 19% 20% 1.000 1.000 1.000 1.000 2.170 2.180 2.190 2.200 3539 3.572 3.6.40 5.141 5.215 5.291 5.368 7.154 7.297 7442 9207 9442 9683 9930 11.772 12.142 12.523 12916 14773 15 327 15.902 16 499 18.285 19.086 19.923 22 393 23.521 24.701 25959 27 200 28.755 30.404 32 150 32.824 34.931 3 7.180 39.581 39 404 42219 45244 48 497 47.103 50.818 54.841 59.196 56110 60965 66.261 72035 66.649 72.939 79.850 87.442 78.979 8 7.068 96.022 105.93 93 406 10374 11527 128 12 110.29 123.41 138.17 154.74 10 03 14/01 165 42 186 69 292.11 34260 4 0204 471.98 647.44 790,95 966.7 1.181.9 3.134.5 4.163.215.529.8 7,343.9 15.090.0 21.813.0 31.5150 45,497.0 25% 1.000 2.250 3.813 5.766 8.207 11.259 15.073 19.842 25.802 33.253 42566 54.208 61.760 85.949 109 69 138.11 173.64 218.05 273.56 34295 1,0548 3.2272 30.089.0 280 2560 3.990 6.187 9043 12.756 17 583 23.858 32.015 42.619 56.405 74.327 97.625 127.91 167.29 218.47 285.01 371.52 483.97 . 630.17 2,348.80 8.730.0 120.393.0 1,659,76.0 8 ONS
