Determine the future value of the following annuities; assume each annuity can earn 10 percent interest. A.

Question:

Determine the of the following annuities; assume each can earn 10 percent interest.
A. Six annual payments of $ 15,000 beginning one year from today.
B. 12 semiannual payments of $ 7,500 beginning six months from today.
C. 24 quarterly payments of $ 3,750 beginning three months from today.
D. Explain why the results differ.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...