Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help answer this question is due today. Future Value of an Annuity Find the future value of the following annuities. The first payment in

Please help answer this question is due today.

image text in transcribed

Future Value of an Annuity Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. a. $800 per year for 10 years at 12%. $ b. $400 per year for 5 years at 6%. $ c. $800 per year for 5 years at 0%. $ d. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Future value of $800 per year for 10 years at 12% : $ Future value of $400 per year for 5 years at 6%:$ Future value of $800 per year for 5 years at 0%:$ Future Value of an Annuity Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. a. $800 per year for 10 years at 12%. $ b. $400 per year for 5 years at 6%. $ c. $800 per year for 5 years at 0%. $ d. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Future value of $800 per year for 10 years at 12% : $ Future value of $400 per year for 5 years at 6%:$ Future value of $800 per year for 5 years at 0%:$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essential Personal Finance A Practical Guide For Students

Authors: Lien Luu, Jonquil Lowe, Jason Butler, Tony Byrne

1st Edition

1138692956, 978-1138692954

More Books

Students also viewed these Finance questions

Question

7. Define cultural space.

Answered: 1 week ago

Question

8. Describe how cultural spaces are formed.

Answered: 1 week ago