Chapter 12.I, Problem 5RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

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

Annuity |
Payment |
Time |
Nominal |
Interest |
Future Value |
||||||

Payment |
Frequency |
Period (years) |
Rate (%) |
Compounded |
of the Annuity |
||||||

5. $1,500 | every 3 months | 7 | 6 | quarterly | __________________________ |

To determine

**To calculate:** The future value of ordinary annuities where annuity payment is

Explanation

**Given Information:**

Annuity payment is

**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,

**Calculation:**

Consider that Annuity payment is

As the interest is compounded quarterly. So, the interest rate period is;

Sect-12.I P-1TIESect-12.I P-2TIESect-12.I P-3TIESect-12.I P-1RESect-12.I P-2RESect-12.I P-3RESect-12.I P-4RESect-12.I P-5RESect-12.I P-6RESect-12.I P-7RE

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

Applied Calculus

Statistics for The Behavioral Sciences (MindTap Course List)

Precalculus: Mathematics for Calculus (Standalone Book)

Elementary Technical Mathematics

Single Variable Calculus: Early Transcendentals, Volume I

Mathematical Applications for the Management, Life, and Social Sciences

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Multivariable Calculus

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

Intermediate Algebra

Calculus (MindTap Course List)

Single Variable Calculus

Finite Mathematics and Applied Calculus (MindTap Course List)

Calculus: Early Transcendentals

Calculus: Early Transcendental Functions

Mathematical Excursions (MindTap Course List)

Finite Mathematics

Calculus: An Applied Approach (MindTap Course List)

Understanding Basic Statistics

Probability and Statistics for Engineering and the Sciences

Elementary Geometry For College Students, 7e

Essentials Of Statistics

Calculus of a Single Variable

Elements Of Modern Algebra

Single Variable Calculus: Early Transcendentals

Calculus: Early Transcendental Functions (MindTap Course List)

Trigonometry (MindTap Course List)

Finite Mathematics for the Managerial, Life, and Social Sciences

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

Elementary Geometry for College Students

Study Guide for Stewart's Multivariable Calculus, 8th

Mathematics For Machine Technology

Research Methods for the Behavioral Sciences (MindTap Course List)

Introduction To Statistics And Data Analysis

Multivariable Calculus

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Calculus (MindTap Course List)

Research Methods for the Behavioral Sciences (MindTap Course List)

Statistics for Business & Economics, Revised (MindTap Course List)

College Algebra (MindTap Course List)