Using the appropriate interest table, answer the following questions. (Each case

Question

Using the appropriate interest table, answer the following questions. (Each case is independent of the others) Click here to view factor tables What is the uture value of 25 periodic payments of $4 490 each made at the beginning of each period and compounded at g%? Round factor a ues to Sdec mal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The future value LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Click here to view factor tables What is the present value of $4,360 to be received at the beginning of each of 30 periods, discounted at 5% compound interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) The present value LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE

Explanation / Answer

Annuity payment = $4,490

Number of years = 25, annuity at beginning of the year

interest rate = 8%

Future value = (1+interest rate) * Annuity * ((1+interest rate)n - 1)/interest rate

Future value = 1.08 * 4490 * (1.0825 - 1)/0.08

Future value = 4849.2 * (6.84 - 1)/0.08

Future value = 4849.2 * 73

Future value = $353,991.6

Please post other questions separately. Thanks.

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