5 3. a) Determine the amount of an ordinary simple annuity of $1100 deposited each year...

 

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5 3. a) Determine the amount of an ordinary simple annuity of $1100 deposited each year for 8 years at 4.5% per year compounded annually. You may use the formula or the TVM Solver. If you use the TVM Solver, record the values that you enter. [2 marks] b) Without calculating, predict what would have the greatest impact on the future value: doubling the amount deposited each year, doubling the number of years or doubling the interest rate. [1 mark] c) Do the calculations to see if your prediction is correct. (6 marks). [6 marks] 5 3. a) Determine the amount of an ordinary simple annuity of $1100 deposited each year for 8 years at 4.5% per year compounded annually. You may use the formula or the TVM Solver. If you use the TVM Solver, record the values that you enter. [2 marks] b) Without calculating, predict what would have the greatest impact on the future value: doubling the amount deposited each year, doubling the number of years or doubling the interest rate. [1 mark] c) Do the calculations to see if your prediction is correct. (6 marks). [6 marks]

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Annuity Calculations a Future Value of Annuity Using the formula FV PMT 1 in 1 i Where PMT Periodic ... View the full answer