can you please help me with this problem If you start making $165 monthly contri

Question

can you please help me with this problem

If you start making $165 monthly contributions today and continue them for four years, what is their future value if the compounding rate is 11.00 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

What is the present value of this annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

If you start making $165 monthly contributions today and continue them for four years, what is their future value if the compounding rate is 11.00 percent APR? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Explanation / Answer

FUTURE VALUE = P * {(1+i)^n-1}/i

=165*((1+11%/12)^(4*12)-1)/(11%/12)

=165*((1+0.009166667)^48-1)/(0.009166667)

=165*((1.009166667)^48-1)/(0.009166667)

=165*((1.5496-1)/(0.009166667)

=165*0.5496/(0.009166667)

=90.684/0.009166667

=9893

PRESENT VALUE OF THIS ANNUITY = 9893/(1.11^4)

=6517

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.