Question
Calculate the amount of money that will be in each of the following accounts at the end of the given period (future value) assuming that
- Calculate the amount of money that will be in each of the following accounts at the end of the given period (future value) assuming that interest is compounding annually.
Account Amount Deposited Rate Years Amount
Jackson Brown $30,000 4% 6
Cristy Martel $160,000 6% 12
Jack Daniels $90,000 5% 18
2. What is the Present Value of the following annuities?
Note that an annuity is an payment of the same amount annually. So, for part A below assume an annual payment of $3,000 for 10 years earning 8%.
A. $3,000 a year for 10 years discounted to the present value at 8%.
Amount $_________________
B. $150,000 a year for 3 years discounted to the present value at 3%
Amount $_________________
C. $2,500 a year for 8 years discounted to the present value at 7%
Amount $_________________
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