## Future Worth of Series of Payments### What is the future worth of the following series of payments?a) **$30,000 at the end of each six-month period for five years at 8% compounded semiannually.**b) **$50,000 at the end of each quarter for 10 years at 6% compounded quarterly.**c) **$13,000 at the end of each month for six years at 9% compounded monthly.**These scenarios involve calculating the future value of annuities, where regular payments are made over time with interest compounded at different intervals.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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## Future Worth of Series of Payments

### What is the future worth of the following series of payments?

a) **$30,000 at the end of each six-month period for five years at 8% compounded semiannually.**

b) **$50,000 at the end of each quarter for 10 years at 6% compounded quarterly.**

c) **$13,000 at the end of each month for six years at 9% compounded monthly.**

These scenarios involve calculating the future value of annuities, where regular payments are made over time with interest compounded at different intervals.

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The future value of an investment is significant to both financial planners and investors, as provides estimation on how much an investment today is worth in the future. Thus it refers to a lump sum amount to the value that a provided amount of money will be at a specified point in the future when earning a specified rate of interest. A semi-annual compounding frequency indicates that interest will be compounded 2 times a year; and a quarterly compounding frequency indicates that interest will be compounded 4 times a year

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