(1) Calculate the future value of the following annuity streams: $4,000 received

Question

(1) Calculate the future value of the following annuity streams:

$4,000 received each year for 5 years on the last day of each year if your investments pay 7 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$4,000 received each quarter for 5 years on the last day of each quarter if your investments pay 7 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$4,000 received each year for 5 years on the first day of each year if your investments pay 7 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$4,000 received each quarter for 5 years on the first day of each quarter if your investments pay 7 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

(2)

Calculate the present value of $4,000 received five years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

(3) Calculate the present value of the following annuity streams:

$8,000 received each year for 6 years on the last day of each year if your investments pay 7 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$8,000 received each quarter for 6 years on the last day of each quarter if your investments pay 7 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$8,000 received each year for 6 years on the first day of each year if your investments pay 7 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$8,000 received each quarter for 6 years on the first day of each quarter if your investments pay 7 percent compounded quarterly. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

$4,000 received each year for 5 years on the last day of each year if your investments pay 7 percent compounded annually. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

a)use fv formuale in excel
=fv(7%,5,4000,,0)
=$23,003

b)FV(7%/4,5*4,4000,,0)=94,806.44
c)FV(7%,5,4000,,1)=24,613.16
d)FV(7%/4,5*4,4000,,1)=96,465.56

2a)PV(7%,5,,4000,0)=$2851.94
2b)PV(9%,5,,4000,0)=$2599.73
2c)PV(11%,5,,4000,0)=$2373.81
2d)PV(11%/2,5*2,,4000,0)=2341.72
2e)PV(11%/4,5*4,,4000,0)=2345

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