1. Future value of an annuity
Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent.
Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.
$200 per year for 12 years at 10%.
$100 per year for 6 years at 5%.
$600 per year for 10 years at 0%.
$200 per year for 12 years at 10%.
$100 per year for 6 years at 5%.
$600 per year for 10 years at 0%
2. Time for a lump sum to double
How long will it take $400 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places.
8%.
10%.
20%.
100%.
3. Present and future values for different interest rates
Find the following values. Compounding/discounting occurs annually. Round your answers to the nearest cent.
a. An initial $500 compounded for 10 years at 3%.
b. An initial $500 compounded for 10 years at 6%.
c. The present value of $500 due in 10 year at a discount rate of 3%.
d. The present value of $1,230 due in 10 years at 6%.
e. The present value of $1,230 due in 10 years at 3%.