Exercise A3-11 (Algorithmic) Practice with Tables

Use Future Value Tables and Present Value Tables, or your calculator, to complete the requirements below.

Required:

Round your answers to the nearest cent, if rounding is required.

a. Determine the future value of a single cash flow of $5,480 that earns 7% interest compounded annually for 10 years. $

b. Determine the future value of an annual annuity of 10 cash flows of $500 each that earns 7% compounded annually. $

c. Determine the present value of $5,480 to be received 10 years from now, assuming that the interest (discount) rate is 7% per year. $

d. Determine the present value of an annuity of $500 per year for 10 years for which the interest (discount) rate is 7% per year and the first cash flow occurs one year from now.