Subject :- Accounting What is the future value of a 9%, 5-year ordinary annuity that pays $450 each year? Do not round intermediate calculations. Round your answer to the nearest cent.$___?___If this were an annuity due, what would its future value be? Do not round intermediate calculations. Round your answer to the nearest cent.$___?___

The formula used to calculate future value of annuity is FV of ordinary annuity = Pmt*((1+r)n-1 )/r…

What is the future value of a 9%, 5-year ordinary annuity that pays $450 each year? Do not round intermediate calculations. Round your answer to the nearest cent. S___?___ If this were an annuity due, what would its future value be? Do not round intermediate calculations. Round your answer to the nearest cent. S___?___

What is the future value of a 9%, 5-year ordinary annuity that pays $450 each year? Do not round intermediate calculations. Round your answer to the nearest cent. S_?_ If this were an annuity due, what would its future value be? Do not round intermediate calculations. Round your answer to the nearest cent. S_?_

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 7Q

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You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
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