Using the appropriate tables in the text, Required: Determine: a. the future value of a single deposit

Question:

Using the appropriate tables in the text,

Required:

Determine:

a. the future value of a single deposit of $15,000 that earns compound interest for four years at an interest rate of 10 percent per year.

b. the annual interest rate that will produce a future value of $13,416.80 in six years from a single deposit of $8,000.

c. the size of annual cash flows for an annuity of nine cash flows that will produce a future value of $79,428.10 at an interest rate of 9 percent per year.

d. the number of periods required to produce a future value of $17,755.50 from an initial deposit of $7,500 if the annual interest rate is 9 percent.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...