Question

Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $900 per year for 6 years at 10%. $   $450 per year for 3 years at 5%. $   $200 per year for 16 years at 0%. $   Rework parts a, b, and c assuming they are annuities due. Future value of $900 per year for 6 years at 10%: $   Future value of $450 per year for 3 years at 5%: $   Future value of $200 per year for 16 years at 0%: $

Answer 1

a.	Future Value	=fv(rate,nper,pmt,pv,0)
		= $ 6,944.05
	Where,
	rate	=	10%
	nper	=	6
	pmt	=	-900.00
	pv	=	0
b.	Future Value	=fv(rate,nper,pmt,pv,0)
		=$ 1,418.63
	Where,
	rate	=	5%
	nper	=	3
	pmt	=	-450.00
	pv	=	0
c.	Future Value	=fv(rate,nper,pmt,pv,0)
		=$ 3,200.00
	Where,
	rate	=	0%
	nper	=	16
	pmt	=	-200.00
	pv	=	0
d.
# 1	Future Value	=fv(rate,nper,pmt,pv,1)
		= $7,638.45
	Where,
	rate	=	10%
	nper	=	6
	pmt	=	-900.00
	pv	=	0
# 2	Future Value	=fv(rate,nper,pmt,pv,1)
		=$1,489.56
	Where,
	rate	=	5%
	nper	=	3
	pmt	=	-450.00
	pv	=	0
# 3	Future Value	=fv(rate,nper,pmt,pv,1)
		= $3,200.00
	Where,
	rate	=	0%
	nper	=	16
	pmt	=	-200.00
	pv	=	0
	The difference between ordinary annuities and annuity due is that cash flows are in the end of period in case of ordinary annuities.
	But, cash flows are at the beginning when there is annuity due.