Question

Future Value of $1 Annuity Table: Find the FV of $1/year annuity for each period and discount rate in the table below.

Period 8% 10% 20%

10

15

30

Answer 1

Here, we will use the future value of annuity table. In the table, discount rates are given in columns while periods are given in rows. The value of $1 given in table for various interest rates at varying periods is below:

Period 10:

At 8% : Future value is $14.487

At 10% : Future value is $15.937

At 20%: Future value is $25.959

Period 15:

At 8% : Future value is $27.152

At 10% : Future value is $31.772

At 20%: Future value is $72.035

Period 30:

At 8% : Future value is $113.283

At 10% : Future value is $164.494

At 20%: Future value is $1181.88