Annuities (PV and FV) Annual Amount Deposited 860 Annual Interest Rate 9.2% Deposits are made for each of years 1 - 40. 1. Future value of ordinary annuity. What will these deposits have grown to by end of year 40? A Between 50,000 and 212,000 B Between 212,000 and 253,000 C Between 253,000 and 312,000 D Between 312,000 and 420,000 2. Future value of annuity due What will these deposits have grown to by end of year 40? A Between 50,000 and 227,000 B Between 227,000 and 269,000 C Between 269,000 and 329,000 D Between 329,000 and 420,000 3. Present value of ordinary annuity What are these deposits worth today? A Between 5,000 and 9,400 B Between 9,400 and 10,300 C Between 10,300 and 11,200 D Between 11,200 and 15,000 4. Present value of annuity due What are these deposits worth today? A Between 5,000 and 10,100 B Between 10,100 and 11,100 C Between 11,100 and 12,100 D Between 12,100 and 15,000

Annuities (PV and FV) Annual Amount Deposited 860 Annual Interest Rate 9.2% Deposits are made for each of years 1 - 40. 1. Future value of ordinary annuity. What will these deposits have grown to by end of year 40? A Between 50,000 and 212,000 B Between 212,000 and 253,000 C Between 253,000 and 312,000 D Between 312,000 and 420,000 2. Future value of annuity due What will these deposits have grown to by end of year 40? A Between 50,000 and 227,000 B Between 227,000 and 269,000 C Between 269,000 and 329,000 D Between 329,000 and 420,000 3. Present value of ordinary annuity What are these deposits worth today? A Between 5,000 and 9,400 B Between 9,400 and 10,300 C Between 10,300 and 11,200 D Between 11,200 and 15,000 4. Present value of annuity due What are these deposits worth today? A Between 5,000 and 10,100 B Between 10,100 and 11,100 C Between 11,100 and 12,100 D Between 12,100 and 15,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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Question

Annuities (PV and FV)
Annual Amount Deposited
860
Annual Interest Rate
9.2%
Deposits are made for each of years 1 - 40.
1. Future value of ordinary annuity.
What will these deposits have grown to by end of year 40?
A Between 50,000 and 212,000
B Between 212,000 and 253,000
C Between 253,000 and 312,000
D Between 312,000 and 420,000
2. Future value of annuity due
What will these deposits have grown to by end of year 40?
A Between 50,000 and 227,000
B Between 227,000 and 269,000
C Between 269,000 and 329,000
D Between 329,000 and 420,000
3. Present value of ordinary annuity
What are these deposits worth today?
A Between 5,000 and 9,400
B Between 9,400 and 10,300
C Between 10,300 and 11,200
D Between 11,200 and 15,000
4. Present value of annuity due
What are these deposits worth today?
A Between 5,000 and 10,100
B Between 10,100 and 11,100
C Between 11,100 and 12,100
D Between 12,100 and 15,000

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