solve correctly show all steps neatly a. Use the appropriate formula to find the value of the annuity.b. Find the interest.Periodic Deposit$70 at the end of each monthRate7% compounded monthlyTime10 yearsa. The value of the annuity is $(Do not round until the final answer. Then round to the nearest dollar as needed.)b. The interest is $(Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.)

The above given problem is about finding the future value of the ordinary annuity of amount $70…

a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Time 10 years Rate Periodic Deposit $70 at the end of each month 7% compounded monthly a. The value of the annuity is $ (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is $ (Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.)

a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Time 10 years Rate Periodic Deposit $70 at the end of each month 7% compounded monthly a. The value of the annuity is $ (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is $ (Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 7MC

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

solve correctly show all steps neatly

a. Use the appropriate formula to find the value of the annuity.
b. Find the interest.
Periodic Deposit
$70 at the end of each month
Rate
7% compounded monthly
Time
10 years
a. The value of the annuity is $
(Do not round until the final answer. Then round to the nearest dollar as needed.)
b. The interest is $
(Use the answer from part (a) to find this answer. Round to the nearest dollar as needed.)

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