Calculate the future value of the following annuity streams: $5,000 received eac

Question

Calculate the future value of the following annuity streams:

$5,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each quarter for 5 years on the last day of each quarter if your investments pay 6 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each year for 5 years on the first day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each quarter for 5 years on the first day of each quarter if your investments pay 6 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$5,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Ans. The question has been solved using Financial calculator FC-200V, CMPD function

a. Set Mode as End, PMT= -5000, N=5,I=6%,P/Y=1.C/Y=1, FV=?

FV= 28185.4648

Future value is $28,185.46

b. Set Mode as End, PMT= -5000, N=5*4,I=6%,P/Y=4, C/Y=4, FV=?

FV= 115618.3355

Future value is $115,618.34

c. Set Mode as Begin, PMT= -5000, N=5,I=6%,P/Y=1.C/Y=1, FV=?

FV= 29876.59269

Future value is $29,876.59

d. Set Mode as Begin, PMT= -5000, N=5*4,I=6%,P/Y=4, C/Y=4, FV=?

FV= 117352.6105

Future value is $117,352.61

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