Question

fill in the missing future values in the following table for an ordinary annuity.

Number of Payments or Years		Annual Interest Rate		Present Value		Annuity		Future Value
7		8​%		0		​$210.59		​?
17		17​%		0		​$1368.71		​?
25		3.5%		0		​$658.68		​?
340		0.9​%		0		​$496.92		​?

Number of Payments or Years		Annual Interest Rate		Present Value		Annuity		Future Value
7		88%		0		​$210.59		​$nothing ​(Round to the nearest​ cent.)

Answer 1

The question is solved with the help of a financial calculator.

1.Time= 7 years

Yield to maturity= 8%

Annual coupon payment= $210.89

Present value =$0

The future value is calculated by entering the below in a financial calculator:

N= 7; I/Y= 8; PMT= 210.89; PV= 0

Press CPT and FV to calculate the future value

The future value is $1,881.73.

2.Time= 17 years

Yield to maturity= 17%

Annual coupon payment= $1,368.71

Present value =$0

The future value is calculated by entering the below in a financial calculator:

N= 17; I/Y= 17; PMT= 1,368.71; PV= 0

Press CPT and FV to calculate the future value

The future value is $108,099.55.

3. Time= 25 years

Yield to maturity= 3.5%

Annual coupon payment= $658.68

Present value =$0

The future value is calculated by entering the below in a financial calculator:

N= 25; I/Y= 3.5; PMT= 658.68; PV= 0

Press CPT and FV to calculate the future value

The future value is $25,655.49.

4.Time= 340 years

Yield to maturity= 0.9%

Annual coupon payment= $496.92

Present value =$0

The future value is calculated by entering the below in a financial calculator:

N= 340; I/Y= 0.9; PMT= 496.92; PV= 0

Press CPT and FV to calculate the future value

The future value is $1,106,343.56

5. Time= 7 years

Yield to maturity= 88%

Annual coupon payment= $210.59

Present value =$0

The future value is calculated by entering the below in a financial calculator:

N= 7; I/Y= 88; PMT= 210.59; PV= 0

Press CPT and FV to calculate the future value

The future value is $19,624.39.