Question
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
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
Points: 0 of 1
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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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.
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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.)
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