Question
In: Finance
Calculate the future value of the following annuity streams: (LG 2-9) a. $5,000 received each year...
Calculate the future value of the following annuity streams: (LG 2-9) a. $5,000 received each year for five years on the last day of each year if your investments pay 6 percent compounded annually. b. $5,000 received each quarter for five years on the last day of each quarter if your investments pay 6 percent compounded quarterly. c. $5,000 received each year for five years on the first day of each year if your investments pay 6 percent compounded annually. d. $5,000 received each quarter for five years on the first day of each quarter if your investments pay 6 percent compounded quarterly.SHOW in excel please.
Solutions
Expert Solution
To solve all the parts of this question, we will use the function FV in excel.
a. $5,000 received each year for five years on the last day of each year if your investments pay 6 percent compounded annually.
Hence, FV = $28,185
b. $5,000 received each quarter for five years on the last day of each quarter if your investments pay 6 percent compounded quarterly
Hence, the FV = $115,618
c. $5,000 received each year for five years on the first day of each year if your investments pay 6 percent compounded annually.
Hence, FV = $29,877
d. $5,000 received each quarter for five years on the first day of each quarter if your investments pay 6 percent
Hence, FV = $117,353
jeff jeffy answered 1 year agoRelated Solutions
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