Find the future value and total interest of the annuity.PeriodicAnnual interestpayment$2,400Annuity typePayment paidQuarterlyOrdinary annuityClick the icon to view the Future Value of $1.00 Ordinary Annuity table.The future value of the ordinary annuity is $(Round to the nearest cent as needed.)The total interest of the annuity is $(Round to the nearest cent as needed.)rate10%Years5... uture Value of $1.00 Ordinary AnnuityPeriods 0.25%1234567891011121314Rate per period1.00% 1.50% 2.00%2.50%0.50% 0.75%1.000 1.000 1.000 1.0002.005 2.008 2.0101.0001.0001.0002.0022.0152.0202.0253.0083.0153.023 3.0303.0453.0603.0764.0154.0304.045 4.0604.091 4.1224.1535.025 5.0505.076 5.1015.1525.2045.2566.2306.3086.3886.038 6.076 6.114 6.1527.2147.1598.2867.0537.1067.4347.3237.5478.0708.1418.2138.4338.583 8.7369.755 9.95511.20310.9509.369 9.5599.1829.0919.27510.113 10.228 10.344 10.462 10.70311.863 12.169 12.48311.139 11.279 11.422 11.56713.412 13.79612.166 12.336 12.508 12.683 13.04114 23715.140 15.61814.68013.80913.60117.08615.974 16.51915.45017.932 18.59917.29313.197 13.39714.230 14.46414.94715.26515.53716.097 16.68220AC CA40 30n..1514.70315.814ATOnin Lennon.3.00%3.50% 4.00%1.0001.0001.0002.0302.0353.091 3.1064.184 4.2155.309 5.3626.4682.0403.1224.2465.4166.55 6.6337.6627.7797.8988.8929.0529.21413.48610.159 10.368 10.58311.464 11.731 12.00612.808 13.14214. 192 14.60216. 11317.67719 29615.02616.62718 29220.024EE2005

We know that, FVA Ordinary = P×1+in-1i =$2400×1+10%44×5-110%4=$61,307.1782=$61,307.18

Answered: Find the future value and total…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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Similar questions

Value of an Annuity Using the appropriate tables, solve each of the following. Required: 1. Beginning December 31, 2020, 5 equal withdrawals are to be made. Determine the equal annual withdrawals if 30,000 is invested at 10% interest compounded annually on December 31, 2019. 2. Ten payments of 3,000 are due at annual intervals beginning June 30, 2020. What amount will be accepted in cancellation of this series of payments on June 30, 2019, assuming a discount rate of 14% compounded annually? 3. Ten payments of 2,000 are due at annual intervals beginning December 31, 2019. What amount will be accepted in cancellation of this series of payments on January 1, 2019, assuming a discount rate of 12% compounded annually?
Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022
Present value of an annuity Consider the following case. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity Interest rate Period (years) $26,000 9% 4 a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, which type of annuity—ordinary or annuity due—is preferable? Explain why.
Give typing answer with explanation and conclusion to all parts If $387674 is used to purchase an annuity earning 5.5% compounded monthly and paying $3102 at the end of each month, what will be the term of the annuity? Include the final, smaller annuity payment in the total. (Just state total months as a number, not years and months) What is N? What is I/Y? What is C/Y? What is P/Y? What is PV? What is PMT? What is FV?
Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream. Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 ? $0.00 $600.00 $2,386.09 18 ? $13,278.73 $354.57 $0.00 40 ? $0.00 $1,872.79 $40,000.00 60 ? $266,564.09 $500.00 $0.00 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 10 nothing% (Round to two decimal places.) $0.00 $600.00 $2,386.09 18 nothing% (Round to two decimal places.) $13,278.73 $354.57 $0.00 40 nothing% (Round to two decimal places.) $0.00 $1,872.79 $40,000.00…
An annuity pays an amount of $86.00 each period for 9 periods, and the present value is $666.00. What is the discount rate/period of this annuity kindly use formula

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