For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (i = interest rate, and n= number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Annuity Amount n = 1. 2$ 4,600 8% 2. 298,092 90,000 4 3. 589,335 80,000 10% 4. 630,000 106,975 10 5. 185,000 10%
![Exercise 5-13 (Algo) Solving for unknowns; annuities (LO5-9]
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that
all annuity amounts are received at the end of each period. (i = interest rate, andn= number of years) (FV of $1, PV of $1, FVA of $1,
PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest
whole dollar amount.)
Present Value
Annuity Amount
n =
1.
2$
4,600
8%
5
298,092
90,000
3.
589,335
80,000
10%
4.
630,000
106,975
10
5.
185,000
10%
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2F5ff2e0b5-0977-4358-a515-5e62da4a37b3%2Fp9sx7d_processed.jpeg&w=3840&q=75)
Present Value: The present value (PV) of a future amount of money or stream of cash flows is the current value of the future sum of money or stream of cash flows when a specific rate of return is assumed. Consequently, future cash flows are discounted at the discount rate, and the greater the discount rate, the lower the present value of the future cash flows is calculated.
Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a present asset at some point in the future. It is significant to investors and financial planners because it allows them to predict how much an investment will be worth in the future based on the current value of the investment.
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