Number of Payments or Years Annual Interest Rate Present Value Annuity Future Value 6 10% 0 348.39 19 15% 0 1,381.02 26 3% 0 690.67 280 0.5% 0 435.69

Homework:Chapter 4 Homework

Question 2, P4-2 (similar to)

Part 1 of 4

HW Score: 12.5%, 2 of 16 points

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Part 1

Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity:

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Part 1

Number of Payments or Years		Annual Interest Rate		Present Value		Annuity		Future Value
6		10%		0		$348.39		$enter your response here (Round to the nearest cent.)

2.

Future

value.

A speculator has purchased land along the southern Oregon coast. He has taken a loan with the end-of-year payments of

$7,200

for

12

years. The loan rate is

7%.

At the end of

12

years, he believes that he can sell the land for

$120,000.

If he is correct on the future price, did he make a wise investment?

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Part 1

What is the future value of the loan

12

years from now?

$enter your response here

(Round to the nearest cent.)

3.

Future

value.

Jack and Jill are saving for a rainy day and decide to put

$65

away in their local bank every year for the next

20

years. The local Up-the-Hill Bank will pay them

9%

on their account. a.If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of

20

years?b. Unfortunately, Jack had an accident in which he sustained head injuries after only

10

years of savings. The medical bill has come to

$900.

Is there enough in the rainy-day fund to cover it?

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Part 1

a. If Jack and Jill put the money in the account faithfully at the end of every year, how much will they have in it at the end of

20

years?

$enter your response here

(Round to the nearest cent.)