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.

1. $900 per year for 12 years at 10%.

   $  

2. $450 per year for 6 years at 5%.

   $  

3. $700 per year for 6 years at 0%.

   $  

4. Rework parts a, b, and c assuming they are annuities due.

   Future value of $900 per year for 12 years at 10%: $  

   Future value of $450 per year for 6 years at 5%: $  

   Future value of $700 per year for 6 years at 0%: $  

Answer 1

ans a,b and c
	we have to use financial calculator to solve this
	Put in calculator for each case
		Case a)	Case b)	Case c)
	PV	0	0	0
	PMT	-900	-450	-700
	I	10%	5%	0%
	N	12	6	6
	Compute FV	$19,245.86	$3,060.86	$4,200.00
	Ans a)	$19,245.86
	Ans b)	$3,060.86
	Ans c)	$4,200.00
ans d
	Put in calculator for each case , set the calculator at BEGIN mode
		Case i)	Case ii)	Case iii)
	PV	0	0	0
	PMT	-900	-450	-700
	I	10%	5%	0%
	N	12	6	6
	Compute FV	$21,170.44	$3,213.90	$4,200.00
	Ans i)	$21,170.44
	Ans ii)	$3,213.90
	Ans iii)	$4,200.00