Practice with Tables

Use Future Value of a Single Amount, Present Value of a Single Amount, Future Value of an Annuity and Present Value of an Annuity, or your calculator, to complete the requirements below.

Required:

Round factors to five decimal places and final answer to the nearest cent.

a. Determine the future value of a single cash flow of $4,670 that earns 7% interest compounded annually for 10 years.

b. Determine the future value of an annual annuity of 10 cash flows of $500 each that earns 7% compounded annually.

c. Determine the present value of $4,670 to be received 10 years from now, assuming that the interest (discount) rate is 7% per year.

d. Determine the present value of an annuity of $500 per year for 10 years for which the interest (discount) rate is 7% per year and the first cash flow occurs one year from now.