Question
In: Finance
Which variable has the biggest impact on TVM calculations? Examine an FV of an annuity problem...
Which variable has the biggest impact on TVM calculations? Examine an FV of an annuity problem where annual payments are $2,800, the rate of return is 8%, and the number of years is 10. Using these inputs, the FV of the annuity is $40,562.37. For the following questions, use the originally stated variables (PMT = $2,800, N = 10, and I = 8%) except as directed in the question.
What is the FV if the annual payment is doubled from $2,800 to
$5,600? (Round answer to 2 decimal places, e.g.
52.75.)
When the annual payment is doubled, the FV increases to
$ .
What is the FV if the interest rate is doubled from 8% to 16%?
(Round answer to 2 decimal places, e.g.
52.75.)
When interest rate is doubled, FV increases to $ .
What is the FV if the time period is doubled from 10 years to 20
years? (Round answer to 2 decimal places, e.g.
52.75.)
When the time period is doubled, FV increases to
$ .
Solutions
jeff jeffy answered 7 months agoRelated Solutions
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