Question $1$a$)($Chapter $1)$ Present value of annuity.

What will be the present value of $$1500$ in investment payouts $($receipts$)$ that are paid out, placed into savings each year for $30$ years at $8$ percent, compounded annually?

Instructions:

Please include a timeline with all the givens, the formula, and show all calculations $($step by step$)$Thanks much!

Please show your formula: Present value of annuity: PVA$=$ PMT$*\frac{([1-\frac{1}{(1+r{)}^n})]}{r}$

a$)$ Present Value of Annuity $=$

On the financial calculator $($guide$)$: $N=q,\frac{\text{I}}{Y}=q,\%$;$PV=?$; $PMT=,FV=ll$ Question $1$b$)($Chapter $1)$

Question $1$b$.($Please use show formulas and timelines$-$draw, write, etc, thank you. I grade on people showing all calculations, timelines, and steps$/$formulas$.$

Computing the Time Value of Money. Using a financial calculator or time value of money tables in the Chapter Appendix, calculate the following.

a$.$ The future value of $$877$ eight years from now at $7$ percent, monthly frequency

b$.$ The future value of $$877$ eight years from now at $7$ percent, compounded quarterly.

c$.$ The future valu of $$2500$ saved each year for $20$ years at $13$ percent, compounded monthly.

d$.$ The amount a person would have to deposit today $($present value$)$ at an $8$ percent interest rate to have $$10,000$ USD, $20$ years from now, please use monthly frequency of discounting.

e$.$ The amount a person would have to deposit today to be able to take out $$600$ a year for $10$ years from an account earning $8$ percent, using monthly discounting.