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FUTURE VALUE OF A SINGLE AMOUNT: A B C D E F Present Value 200 4,500 10,000 25,000 37,000 40,000 Interest Rate Per Year 5%

FUTURE VALUE OF A SINGLE AMOUNT:
A B C D E F
Present Value 200 4,500 10,000 25,000 37,000 40,000
Interest Rate Per Year 5% 8% 9% 10% 11% 12%
Number of Years 20 7 10 12 5 9
Future Value
PRESENT VALUE OF A SINGLE AMOUNT:
A B C D E
Future Value 7,000 28,000 10,000 150,000 45,000
Interest Rate Per Year 12% 8% 14% 11% 20%
Number of Years 4 20 12 6 8
Present Value
1. Annuity
PRESENT VALUE OF AN ANNUITY
A B C D E
Annuity Amount 12,000 55,000 700 140,000 22,500
Interest Rate Per Year 7% 12% 20% 5% 10%
Number of Years 3 15 9 7 5
Present Value
PRESENT VALUE OF AN ANNUITY DUE
2. Annuity due
PRESENT VALUE OF AN ANNUITY DUE
A B C D E
Annuity Amount 12,000 55,000 700 140,000 22,500
Interest Rate Per Year 7% 12% 20% 5% 10%
Number of Years 3 15 9 7 5
Present Value
a b
Annual payment 2,000 2,000
Interest Rate Per Year 10% 10%
Number of Years 40 30
Future value
a b
Annual payment 2,000 2,000
Interest Rate Per Year 10% 10%
Number of Years 40 30
Future value
Part a: Future value of a single amount compounded:
A B C D
Present Value 2,500 50,000 1,000 20,000
Interest Rate 6% 12% 5% 16%
Number of years 5 3 10 6
Compounding Frequency 2 6 1 4
Future value
Part b: Effective Annual Rate
A B C D
Present Value 2,500 50,000 1,000 20,000
Interest Rate 6% 12% 5% 16%
Number of years 5 3 10 6
Compounding Frequency 2 6 1 4
Effective Annual Rate =
Single Single Life of Approximate
Investment Investment Return Investment Interest Rate
A 5,000 8,400 6
B 5,000 15,900 15
C 5,000 7,600 4
D 5,000 13,000 10

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