Use the formula PV = R[1-(1+i)] Calculate FV for each set of values. i a. R...

  

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Use the formula PV = R[1-(1+i)"] Calculate FV for each set of values. i a. R = $100, i=0.025, n = 15 .08 b. R = $200, i=, n = 50 4 10 4 c. R = $750, i= n = 36 2. 4. 5. Key Question #2 (continued) Calculate the amount of each annuity. ou noqqué a. $1200 withdrawn every six months for 5 years at 4% compounded semi- annually. b. $500 withdrawn at the end of each year for 12 years at 4.75% compounded annually. 3. Don won the "Cash for Life" lottery and will receive a $1000 per week for the next 25 years. How much must the lottery corporation invest today into an account that pays 4% compounded weekly to provide Don with the prize? c. $1250 withdrawn at the end of every three months for 20 years at 6.25% compounded quarterly. An annuity pays $1200 per year for 15 years. The money is invested at 5.2% compounded annually. The first payment is made 1 year after the purchase of the annuity. Determine the interest earned by the annuity over the 15 years. Noah wants to buy a 5 year annuity. He has two options. . . Option A pays $1000 at the end of each year, starting one year from now. It earns interest at 6.25% compounded annually. Option B pays $500 at the end of every six months, starting six months from now. It earns interest at 6.25% compounded semi-annually. Which annuity should Noah choose? Write an explanation that includes calculations to support your answer. Use the formula PV = R[1-(1+i)"] Calculate FV for each set of values. i a. R = $100, i=0.025, n = 15 .08 b. R = $200, i=, n = 50 4 10 4 c. R = $750, i= n = 36 2. 4. 5. Key Question #2 (continued) Calculate the amount of each annuity. ou noqqué a. $1200 withdrawn every six months for 5 years at 4% compounded semi- annually. b. $500 withdrawn at the end of each year for 12 years at 4.75% compounded annually. 3. Don won the "Cash for Life" lottery and will receive a $1000 per week for the next 25 years. How much must the lottery corporation invest today into an account that pays 4% compounded weekly to provide Don with the prize? c. $1250 withdrawn at the end of every three months for 20 years at 6.25% compounded quarterly. An annuity pays $1200 per year for 15 years. The money is invested at 5.2% compounded annually. The first payment is made 1 year after the purchase of the annuity. Determine the interest earned by the annuity over the 15 years. Noah wants to buy a 5 year annuity. He has two options. . . Option A pays $1000 at the end of each year, starting one year from now. It earns interest at 6.25% compounded annually. Option B pays $500 at the end of every six months, starting six months from now. It earns interest at 6.25% compounded semi-annually. Which annuity should Noah choose? Write an explanation that includes calculations to support your answer.