Exercise A3-11 (Algorithmic) Practice with Tables

Use Future Value Tables and Present Value Tables, or your calculator, to complete the requirements below.

Required:

Round your answers to the nearest cent, if rounding is required.

a. Determine the future value of a single cash flow of $4,740 that earns 7% interest compounded annually for 10 years. $

b. Determine the future value of an annual annuity of 10 cash flows of $500 each that earns 7% compounded annually. $

c. Determine the present value of $4,740 to be received 10 years from now, assuming that the interest (discount) rate is 7% per year. $

d. Determine the present value of an annuity of $500 per year for 10 years for which the interest (discount) rate is 7% per year and the first cash flow occurs one year from now.

2) Use Future Value Tables and Present Value Tables, or your calculator, to complete the requirements below.

Round your answers to the nearest cent, if rounding is required.

a. Determine the present value of $1,090 to be received in 7 years, assuming that the interest (discount) rate is 8% per year. $

b. Determine the present value of an annuity of seven cash flows of $1,090 each (one at the end of each of the next 7 years) for which the interest (discount) rate is 8% per year. $

c. Determine the future value of a single cash flow of $1,090 that earns 8% per year for 7 years. $

d. Determine the future value of an annuity of seven cash flows of $1,090 each (one at the end of each of the next 7 years), assuming that the interest rate is 8% per year. $