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.) i = 8% Present Value Annuity Amount 1. 6,000 5 2. 181,495 50,000 4 3. 80,751 10,000 11% 4. 700,000 88,755 11 5. 150,000 10% %24
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.) i = 8% Present Value Annuity Amount 1. 6,000 5 2. 181,495 50,000 4 3. 80,751 10,000 11% 4. 700,000 88,755 11 5. 150,000 10% %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
15.
Transcribed Image Text: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
i =
n =
1.
$
6,000
8%
2
181.495
50,000
4.
3
80,751
10,000
11%
4.
700,000
88.755
11
5.
150,000
10%
4
Expert Solution
Step 1
The formula used for calculation is
Present Value = Annuity * PVAFi%,n
Where, PVAF is Present Value Annuity Factor and its value has been taken from present value tables.
i is interest rate
n is period(years)
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