Exam (elaborations)
FV and PV of annuity due annually test with answers
- Course
- Institution
FINC 330 Homework #3A ( FV and PV of annuity due annually)
[Show more]
Seller
Follow
tonymaksa
Content preview
Homework #3A (FV and PV of annuity due annually)Question 1
Future Value (FV) of an Annuity Due (Pay at Beginning of Period)
http://www.calculatorsoup.com/calculators/financial/future-value-cash-flows-
calculator.php
http://www.financeformulas.net/Future-Value-of-Annuity-Due.html
( 1+r )∗PMT [ ( 1+r )n −1
r ]
What is the accumulated sum of the following stream of payments? $27,707 every year at the
beginning of the year for 6 years, at 6.05 percent, compounded annually. Round the answer to
two decimal places.
Answer:
205,215.95
Question 2
Present Value (PV) of an Annuity Due (Pay at Beginning of Period)
http://www.calculatorsoup.com/calculators/financial/present-value-cash-flows-
calculator.php
( 1+r )∗PMT [ 1−( 1+ r )−n
r ]
You have accumulated some money for your retirement. You are going to withdraw $66,911
every year at the beginning of the year for the next 15 years starting from today. How much
money have you accumulated for your retirement? Your account pays you 8.30 percent per year,
compounded annually. To answer this question, you have to find the present value of these cash
flows. Round the answer to two decimal places.
Answer:
609,057.23
This study source was downloaded by 100000872281541 from CourseHero.com on 09-26-2023 07:18:24 GMT -05:00
https://www.coursehero.com/file/41237560/FINC-330-Homework-3A-FV-and-PV-of-annuity-due-annuallydocx/
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tonymaksa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80467 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now