ASIGNACION LECCION 4(1) (0) [Modo de compatibilidad]- Word Formateo Referencias

Question

ASIGNACION LECCION 4(1) (0) [Modo de compatibilidad]- Word Formateo Referencias CorrespondenciaRevisarVistaIndicar Encabezado- D Pie de página I Gráfico a Captura + Formas Complementos Video Vinculos Comentario Cuadro de en linea Multimedia D Número de pégina texto Encabezado y pie de página aciones Comentarios Texto uture value and time. You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today? Future value of an annuity. For each of the following cases

Explanation / Answer

Answer 1. Future value of $10,000 made today

Amount after 40 years = $10,000 * CVF(9%,40y)

Amount after 40 years = $10,000 * 31.40942 = $314,094.20

Future value of $10,000 made after 10 years

Amount after 40 years = $10,000 * CVF(9%,30y)

Amount after 40 years = $10,000 * 13.267678 = $132,676.78

The value of invetment would be 181,417.42 (314,094.20 - 132,676.78) more if investment is made today rather than 10 years later.

Answer 2. Future value of annuity

a. $2,500 * PVAF(8%,10y)

$2,500 * 14.487= $36,217.50

b.  $500 * PVAF(12%,6y)

$500 * 8.115= $4,057.5

c.  $30,000 * PVAF(20%,5y)

$30,000 * 7.442= $223,260.00

D.  $11,500 * PVAF(9%,8y)

$11,500 * 11.028= $126,822.00

E.  $6,000 * PVAF(14%,30y)

$6,000 * 356.787= $12,140,722.00

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