Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity), However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due) What is the future value of a 12-year annuity of $1,400 per period where payments come at the beginning of each period? The interest rate is 7 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n 6 and / 10 percent. Look up the value of 7716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 6716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value
Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity), However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due) What is the future value of a 12-year annuity of $1,400 per period where payments come at the beginning of each period? The interest rate is 7 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n 6 and / 10 percent. Look up the value of 7716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 6716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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