Use an Excel spreadsheet and the FV, PV, and PMT functions to determine the amount of each of the following.
a. Present value of a $500 annuity when R = 11% compounded annually and t = 18
b. Future value of a $2,400 annuity when R = 5% compounded annually and t = 25
c. Future value of a $950 annuity when R = 12.8% compounded semiannually and t = 15
d. The annual annuity payment that will provide $13,400 in eight years when R = 9% compounded annually
e. Present value of a $10,000 annuity when R = 8% compounded quarterly and t = 10
f. Future value of a $238 annuity when R = 7% compounded annually and t = 16
g. Present value of a $1,000 annuity when R = 63/8% compounded annually and t = 3
h. Present value of a $700 annuity when R = 10% compounded semiannually and t = 11
i. The semiannual annuity payment that will pay off, over six years, a $9,860 debt owed today if R = 13%
j. Future value of a $1 annuity when R = 8% compounded annually and t = 200
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...
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Question Posted: June 20, 2012 06:22:21