Compute the future values of the following annuities first assuming that payment

Question

Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Payment Years Interest Rate (Annual) Future Value
(Payment made on
last day of period) Future Value
(Payment made on
first day of period) $      123     13      13%       $            $            4,555     8      8                              74,484     5      10                                167,332     9      1                               

Explanation / Answer

C n i Payment at the end of the period Payment at the end of the period c*((1+i)^n-1)i) c*(((1+i)^n-1)/i)*(1+i) 123 13 13% $3,688.12 $4,167.57 4555 8 8% $48,449.84 $52,325.83 74484 5 10% $454,732.27 $500,205.50 167332 9 1% $1,567,654.40 $1,583,330.95

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