eBook the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $500 per year for 14 years at 4%. $ b. $250 per year for 7 years at 2%. $ c. $300 per year for 7 years at 0%. $ d. Rework parts a, b, and c assuming they are annuities due. Future value of $500 per year for 14 years at 4%: $ Future value of $250 per year for 7 years at 2%: $ Future value of $300 per year for 7 years at 0%: $
eBook the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $500 per year for 14 years at 4%. $ b. $250 per year for 7 years at 2%. $ c. $300 per year for 7 years at 0%. $ d. Rework parts a, b, and c assuming they are annuities due. Future value of $500 per year for 14 years at 4%: $ Future value of $250 per year for 7 years at 2%: $ Future value of $300 per year for 7 years at 0%: $
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
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Transcribed Image Text:6. Problem 5.14 (Future Value of an Annuity)
BE
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Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.
a. $500 per year for 14 years at 4%.
$
b. $250 per year for 7 years at 2%.
$
c. $300 per year for 7 years at 0%.
$
d. Rework parts a, b, and c assuming they are annuities due.
Future value of $500 per year for 14 years at 4%: $
Future value of $250 per year for 7 years at 2%: $
Future value of $300 per year for 7 years at 0%: $
Expert Solution
Step 1: Define=Future value
Future value is the estimated value of current assets that is discounted at an assumed rate of discount at the future date. Investors evaluate their projects on the basis of their future value and take decisions on acceptance or rejection of projects.
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