Question
Hello, could you help me with these PV & FV problems? TYIA!!!! :) f. Find the PV of an ordinary annuity that pays $1,000 each
Hello, could you help me with these PV & FV problems? TYIA!!!! :)
f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 15%. Then find the FV of that same annuity. Round your answers to the nearest cent.
PV of ordinary annuity: $ fill in the blank 25 FV of ordinary annuity: $ fill in the blank 26
g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent.
PV of annuity due: $ fill in the blank 27 FV of annuity due: $ fill in the blank 28
h. What will the FV and the PV for parts a and c be if the interest rate is 10% with semiannual compounding rather than 10% with annual compounding? Round your answers to the nearest cent.
FV with semiannual compounding: $ fill in the blank 29 PV with semiannual compounding: $ fill in the blank 30
i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 8%. Round your answers to the nearest cent.
Annual payment for ordinary annuity: | $ fill in the blank 31 |
Annual payment for annuity due: | $ fill in the blank 32 |
j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 8%.
Year | Payment |
1 | $200 |
2 | $300 |
3 | $400 |
Round your answers to the nearest cent.
PV of investment: $ fill in the blank 33 FV of investment: $ fill in the blank 34
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