Time for a lump sum to double How long will it take $600 to double if it earns t

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Time for a lump sum to double

How long will it take $600 to double if it earns the following rates? Compounding occurs once a year. Round each answer to two decimal places.

a.         7%.

b.         13%.

c.          19%.

d.         100%.

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.

a.         $300 per year for 2 years at 16%.

b.         $150 per year for 1 year at 8%.

c.          $600 per year for 16 years at 0%.

Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

d.         $300 per year for 2 years at 16%.

e.         $150 per year for 1 year at 8%.

f.          $600 per year for 16 years at 0%.

Present value of an annuity

Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent.

a.         $1,000 per year for 14 years at 8%.

b.         $500 per year for 7 years at 4%.

c.          $400 per year for 8 years at 0%.

Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

d.         $1,000 per year for 14 years at 8%.

e.         $500 per year for 7 years at 4%.

f.          $400 per year for 8 years at 0%.

Present value of an annuity

Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent.

a.         $1,000 per year for 14 years at 8%.

b.         $500 per year for 7 years at 4%.

c.          $400 per year for 8 years at 0%.

Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

d.         $1,000 per year for 14 years at 8%.

e.         $500 per year for 7 years at 4%.

f.          $400 per year for 8 years at 0%.

Explanation / Answer

Doubling Period=0.35+(69/Interest Rate) =0.35+(69/7) 10.21 =0.35+(69/13) 5.66 =0.35+(69/19) 3.98 =0.35+(69/100) 1.04 Future Value of annuity FV(300,2,16%)=(300*1.16^0)+300/(1.16*1) 558.62 FV(150,1,8%)=150*(1.08^0) 150.00 FV(600,16,0%)=600*16 9600 Future Value of annuity due FV(300,2,16%)=(300*1.16^1)+300/(1.16*2) 477.31 FV(150,1,8%)=150*(1.08^1) 162.00 FV(600,16,0%)=600*16 9600 PV of annuities PVA(1000,14,8%)=9.295*1000 9295 PVA(500,7,4%)=6.0021*500 3001.05 PVA(400,8,0%)=400*8 3200

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