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If you start making $160 monthly contributions today and continue them for five years what’s their...

If you start making $160 monthly contributions today and continue them for five years what’s their future value if the compounding rate is 10.25% APR do not round intermediate calculations and round your final answer to two decimal places.

What is the present value of this and annuity?

Solutions

Expert Solution

Monthly rate = 10.25 /12 = .85417%

Number of months = 5*12= 60

Future value of annuity = FVAD.85417%,60 *Amount

                       = 78.61676*160

                       = $ 12578.68

b)Present value of annuity = PVAD.85417%,60 *amount

                       = 47.19365*160

                       = $ 7550.98

**Find present value annuity factor and future value annuity factor from their table respectively.

         

jeff jeffy answered 1 year ago
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