BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Note: Round to the nearest cent when necessary.

Use Table 12-1 to calculate the future value of the following ordinary annuities.

Annuity Payment Time Nominal Interest Future Value
Payment Frequency Period (years) Rate (%) Compounded of the Annuity
$10,000 every year 20 5 annually ________________

To determine

To calculate: The future value of ordinary annuities where annuity payment is $10,000, frequency of payment is 1 year, time duration is 20 years, nominal rate of return is 5% and interest is compounded annually.

Explanation

Given Information:

Annuity payment is $10,000, frequency of payment is 1 year, time duration is 20 years, nominal rate of return is 5% and interest is compounded annually.

Formula used:

Steps for calculating the future value of an ordinary annuity are:

Step1: First the interest rate per period for the annuity is calculated.

Step2: The number of annuity periods should then be determined.

Step 3: Use table 12-1 to locate the ordinary annuity table factor that lies on the intersection of the rate-per period column and number-of-periods row.

Step 4: Finally future value of the ordinary annuity is calculated.

The formula to compute the future value of ordinary annuity is,

Future Value=Ordinary annuity table factor×Annuity payment

Calculation:

Consider that annuity payment is $10,000, frequency of payment is 1 year, time duration is 20 years, nominal rate of return is 5% and interest is compounded annually.

As the interest is compounded annually

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 12 Solutions

Show all chapter solutions add
Sect-12.I P-8RESect-12.I P-9RESect-12.I P-10RESect-12.I P-11RESect-12.I P-12RESect-12.I P-13RESect-12.I P-14RESect-12.I P-15RESect-12.I P-16RESect-12.I P-17RESect-12.I P-18RESect-12.I P-19RESect-12.I P-20RESect-12.I P-21RESect-12.I P-22RESect-12.I P-23RESect-12.I P-24RESect-12.II P-4TIESect-12.II P-5TIESect-12.II P-6TIESect-12.II P-1RESect-12.II P-2RESect-12.II P-3RESect-12.II P-4RESect-12.II P-5RESect-12.II P-6RESect-12.II P-7RESect-12.II P-8RESect-12.II P-9RESect-12.II P-10RESect-12.II P-11RESect-12.II P-12RESect-12.II P-13RESect-12.II P-14RESect-12.II P-15RESect-12.II P-16RESect-12.II P-17RESect-12.II P-18RESect-12.II P-19RESect-12.II P-20RESect-12.II P-21RESect-12.II P-22RESect-12.II P-23RESect-12.II P-24RESect-12.III P-7TIESect-12.III P-8TIESect-12.III P-9TIESect-12.III P-10TIESect-12.III P-1RESect-12.III P-2RESect-12.III P-3RESect-12.III P-4RESect-12.III P-5RESect-12.III P-6RESect-12.III P-7RESect-12.III P-8RESect-12.III P-9RESect-12.III P-10RESect-12.III P-11RESect-12.III P-12RESect-12.III P-13RESect-12.III P-14RESect-12.III P-15RESect-12.III P-16RESect-12.III P-17RESect-12.III P-18RESect-12.III P-19RESect-12.III P-20RESect-12.III P-21RESect-12.III P-22RESect-12.III P-23RESect-12.III P-24RESect-12.III P-25RECh-12 P-1CRCh-12 P-2CRCh-12 P-3CRCh-12 P-4CRCh-12 P-5CRCh-12 P-6CRCh-12 P-7CRCh-12 P-8CRCh-12 P-9CRCh-12 P-10CRCh-12 P-11CRCh-12 P-12CRCh-12 P-13CRCh-12 P-14CRCh-12 P-1ATCh-12 P-2ATCh-12 P-3ATCh-12 P-4ATCh-12 P-5ATCh-12 P-6ATCh-12 P-7ATCh-12 P-8ATCh-12 P-9ATCh-12 P-10ATCh-12 P-11ATCh-12 P-12ATCh-12 P-13ATCh-12 P-14ATCh-12 P-15ATCh-12 P-16ATCh-12 P-17ATCh-12 P-18ATCh-12 P-19ATCh-12 P-20ATCh-12 P-21ATCh-12 P-22ATCh-12 P-23ATCh-12 P-24ATCh-12 P-25ATCh-12 P-26ATCh-12 P-27ATCh-12 P-28ATCh-12 P-29ATCh-12 P-30ATCh-12 P-31ATCh-12 P-32ATCh-12 P-33ATCh-12 P-34ATCh-12 P-35AT

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Convert the expressions in Exercises 8596 radical form. 22/3

Finite Mathematics and Applied Calculus (MindTap Course List)

Use the following matrices for Problems 1-28. 5. Write the negative of matrix F.

Mathematical Applications for the Management, Life, and Social Sciences

Express the limit as a definite integral. limn1ni=1n11+(i/n)2

Single Variable Calculus: Early Transcendentals, Volume I

In Exercises 19-22, determine whether the statement is true or false. If it is true, explain why it is true. If...

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Evaluate the integral 33. x2(4x2)3/2dx

Single Variable Calculus: Early Transcendentals

For f(x, y) = ln(x + y), f(e2, e3) = 2 ln (1 + e) 2 + ln(1 + e) 5

Study Guide for Stewart's Multivariable Calculus, 8th

Which graph represents y=x+1x

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Under what circumstances is a stratified random sample preferred to a simple random sample?

Research Methods for the Behavioral Sciences (MindTap Course List)

Analyze the following numbers. 3006.0204

Mathematics For Machine Technology

Simplify each expression. -10i24

College Algebra (MindTap Course List)

Describe the characteristics of a good hypothesis and identify examples of good and bad hypotheses.

Research Methods for the Behavioral Sciences (MindTap Course List)