Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity:Number ofPayments orYears516AnnualInterest Rate8%18%Data table51625340Present Value(Click on the following iconNumber ofPayments orYearsAnnualInterest Rate8%18%4%0.9%00Annuity$282.81$1,331.99in order to copy its contents into a spreadsheet.)0000Present ValueAnnuity$282.81$1,331.99$726.91$460.85Future Value$1,659.13 (Round to the nearest cent.)(Round to the nearest cent.)Future Value????X

A level or series of cash flows that occur at the end of each period for a fixed number of periods…

Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity: Number of Payments or Years 5 16 Annual Interest Rate Data table 8% 18% 5 16 25 340 Present Value Annual Interest Rate 0 0 8% 18% 4% 0.9% (Click on the following icon in order to copy its contents into a spreadsheet.) Number of Payments or Years oooo Present Value 0 0 Annuity 0 $282.81 $1,331.99 0 C... Annuity $282.81 $1,331.99 $726.91 $460.85 Future Value $1,659.13 (Round to the nearest cent.) $ (Round to the nearest cent.) Future Value ? ? ? ? X

Future value of an ordinary annuity. Fill in the missing future values in the following table for an ordinary annuity: Number of Payments or Years 5 16 Annual Interest Rate Data table 8% 18% 5 16 25 340 Present Value Annual Interest Rate 0 0 8% 18% 4% 0.9% (Click on the following icon in order to copy its contents into a spreadsheet.) Number of Payments or Years oooo Present Value 0 0 Annuity 0 $282.81 $1,331.99 0 C... Annuity $282.81 $1,331.99 $726.91 $460.85 Future Value $1,659.13 (Round to the nearest cent.) $ (Round to the nearest cent.) Future Value ? ? ? ? X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payment $ 183 5,155 75,084 167,932 Years 13 8 5 9 Interest Rate (Annual) 12% 11 13 4 Future Value (Payment made on last day of period) 4 Future Value (Payment made on first day of period)
For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment $ 2,000 $ 1,280 $ 11,580 30,150 69 $ Years 7 17 25 Interest Rate 9 % 8 10 12
Q. 4
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If the present value of an ordinary, 6-year annuity is $8,800 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.) PV = $_______.__
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Use the table below to answer the following questions: Present Value of an Annuity of 1 Future Value of an Annuity of 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 4 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 5 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 6 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 7 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 8 6.7327 6.4632 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 9 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 10 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 11 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 Bobby gets a yearly alimony payment from his ex-wife and wants to save enough to put a 15% down payment on a home in 4 years. Median homes go for $950,000 and are expected to appreciate at the inflation rate of 3%. How much should Bobby put away into an investment each year if he can get a 8% return a year?…
Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Amount of annuity $5,000 Interest rate 6% Deposit period (years) 7 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due is preferable as an investment? Explain why.
For each of the following annuities, calculate the present value. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Annuity Payment $ $ $ $ 1,950 1,265 11,455 29,900 Years 7 9 16 24 Interest Rate 8% 7 9 11
The ___________ of an annuity is the amount that must be invested now at interest rate i per time period to provide n payments each of amount R.