Question
In: Finance
What is the future value of a five-year ordinary annuity of $1,000 per year if the...
What is the future value of a five-year ordinary annuity of $1,000 per year if the interest rate is 1.28%? Hint: solve for year 5.
Solutions
Expert Solution
Rate of Interest (RATE) = 1.28%; Tenure (NPER) = 5 years and the Annuity Payments (PMT) = $ 1000 per year
Future Value (FV) = FV9RATE,NPER,-PMT,PV,0) = (FV(1.28%,5,-1000,,) = $ 5129.65
Answer: $ 5129.65
jeff jeffy answered 2 years agoRelated Solutions
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"What is the future value of an ordinary $1,000 annuity payment over six years if interest...
"What is the future value of an ordinary $1,000 annuity payment
over six years if interest rates are 6% (assume annual
compounding)?"
"$6,000.00 "
"$6,975.32 "
"$4,917.32 "
"$9,675.32 "
Not possible to compute with the data provided
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rate is 5.6%?
(b) What is the present value of this 4-year
ordinary annuity?
(c) What would the
i) future, and ii) present value, be if this annuity were an
annuity due (still 4 years)? Hint: set your calculator to BGN,
there is a video in M2 that shows you how to do this. Don’t
forget to reset to “END” after you...
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