I = PRT D = d FV = PV(1 + i)" 72/x= number of periods P=M D FV = PVert Stili = (1+i)"1 FV = (PMT)sli FV = (PMT)(1+i)sli aoji = Si/(1+i)" PV = (PMT)anli PV = (PMT)(1+i)ali Consider an ordinary annuity with a $500 payment on Dec. 31 of every year, for 9 years (starting on Dec. 31, 2015), and 3% annually compounded interest per year. a. (2 points) Write an expression for the future value of the first three payments. b. (2 points) How much money will be in your account at the end of the 9 years? c. (4 points) The total account value in part (c) is really the result of computing a long sum (even though you used a formula as a shortcut). Derive the formula for the future value of an ordinary annuity with $1 payments, 9 payment periods, and 3% interest per payment period, exactly as we did in class, and after use it to compute the future value. (Hint: the strategy is to take the full expression for FV, already written out in the second line, and multiply both sides of the equation by 1.03, which is partly written out in the first line. Then perform the subtraction of equations, see what cancellation occurs, and solve for the value of FV. This will give the future if payments were $1. Then, you can multiply the expression by $500 to get the future value. ] = (1.03)FV ($1)(1.03)8 + ($1)(1.03)? +...+ ($1)(1.03)3 + ($1)(1.03)2 + ($1)(1.03) + $1 = FV Upload Choose a File