Week Three 1 Mark Welsch deposits $7,100 in an account that earns interest at an annual rate of 4 , compounded quarterly The $7,100 plus earned interest must remain in the account 4 years before it can be withdrawn How much money will be in the account at the end of 4 years (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided Round FV factor to 4 decimal places ) Present Value x f (FV of a Single Amount) Total Accumulation $7,100 x 2 Jones expects an immediate investment of $54,090 to return $11,000 annually for six years, with the first payment to be received one year from now What rate of interest must Jones earn (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided Present Value Annuity Payment p (PV of an Ordinary Annuity) Interest Rate 3 Keith Riggins expects an investment of $267,794 to return $24,000 annually for several years If Riggins earns a return of 6 , how many annual payments will he receive (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided Round PVA factor to 4 decimal places ) Present Value Annuity Payment p (PV of an Ordinary Annuity) Annual Payments payments 4 C H Ski Club recently borrowed money and agrees to pay it back with a series of six annual payments of $22,000 each C H subsequently borrows more money and agrees to pay it back with a series of four annual payments of $25,000 each The annual interest rate for both loans is 7 Find the present value of these two separate annuities (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided Round PV factor to 4 decimal places ) First Annuity Number of Periods Interest Rate Single Future Payment x PV of $1 Value Amount Borrowed First payment 1 7 0 $ 22,000 x Second payment 2 7 0 22,000 x Third payment 3 7 0 22,000 x Fourth payment 4 7 0 22,000 x Fifth payment 5 7 0 22,000 x Sixth payment 6 7 0 22,000 x $0 Second Annuity Number of Periods Interest Rate Single Future Payment x PV of $1 Value Amount Borrowed First payment 1 7 0 $ 25,000 x Second payment 2 7 0 25,000 x Third payment 3 7 0 25,000 x Fourth payment 4 7 0 25,000 x $0 PLEASE FILL IN EACH BLANK WITH THE CORRECT ANSWERS WHEN ANSWERING THE QUESTIONS PLEASE USE THE SAME BOX FRAMES FORMATS AS ABOVE THEN FILL IN THE ANSWERS

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Week Three 1. Mark Welsch deposits $7,100 in an account that earns interest at an annual rate of 4%, compounded quarterly. The $7,100 plus earned

Week Three

1. Mark Welsch deposits $7,100 in an account that earns interest at an annual rate of 4%, compounded quarterly. The $7,100 plus earned interest must remain in the account 4 years before it can be withdrawn. How much money will be in the account at the end of 4 years? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round FV factor to 4 decimal places.)

Present Value	x	f (FV of a Single Amount)	=	Total Accumulation
$7,100	x		=

2. Jones expects an immediate investment of $54,090 to return $11,000 annually for six years, with the first payment to be received one year from now. What rate of interest must Jones earn? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.

Present Value	/	Annuity Payment	=	p (PV of an Ordinary Annuity)	Interest Rate
	/		=			%

3. Keith Riggins expects an investment of $267,794 to return $24,000 annually for several years. If Riggins earns a return of 6%, how many annual payments will he receive? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PVA factor to 4 decimal places.)

Present Value	/	Annuity Payment	=	p (PV of an Ordinary Annuity)	Annual Payments
	/		=			payments

4. C&H Ski Club recently borrowed money and agrees to pay it back with a series of six annual payments of $22,000 each. C&H subsequently borrows more money and agrees to pay it back with a series of four annual payments of $25,000 each. The annual interest rate for both loans is 7%. Find the present value of these two separate annuities. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor to 4 decimal places.)

First Annuity
	Number of Periods	Interest Rate	Single Future Payment	x	PV of $1 Value	=	Amount Borrowed
First payment	1	7.0%	$ 22,000	x		=
Second payment	2	7.0%	22,000	x		=
Third payment	3	7.0%	22,000	x		=
Fourth payment	4	7.0%	22,000	x		=
Fifth payment	5	7.0%	22,000	x		=
Sixth payment	6	7.0%	22,000	x		=
							$0
Second Annuity
	Number of Periods	Interest Rate	Single Future Payment	x	PV of $1 Value	=	Amount Borrowed
First payment	1	7.0%	$ 25,000	x		=
Second payment	2	7.0%	25,000	x		=
Third payment	3	7.0%	25,000	x		=
Fourth payment	4	7.0%	25,000	x		=
							$0

PLEASE FILL IN EACH BLANK WITH THE CORRECT ANSWERS; WHEN ANSWERING THE QUESTIONS PLEASE USE THE SAME BOX FRAMES/FORMATS AS ABOVE THEN FILL IN THE ANSWERS