Please reply with screenshot if possible, thank you 13. Ann plans to deposit $10

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Please reply with screenshot if possible, thank you

13. Ann plans to deposit $100 in an account at the end of each month for the next five years so that she can take a trip. (a) If Ann's opportunity cost rate is 6 percent compounded monthly, how much will she have in the account in five years? (b) How much will be in the account if the deposits are made at the beginning of each month? 14. Becky would like to set up an account to supplement her parents' retirement income for the next 15 years. (a) If the account earns 7.2 percent compounded monthly, how much will Becky have to deposit today so that her parents are paid $150 at the end of each month? (b) How much would she have to deposit if her parents wanted to receive the $150 payment at the beginning of each month? If the opportunity cost rate is 7.5 percent, what is the present value of an investment that pays $500 at the end of this year, $400 at the end of the next year, and $300 at the end of the following year? What is the present value if the payments are made at the beginning of each year? 15. Suppose Denise deposits $500 in an account at the end of this year, $400 at the end of the next year, and $300 at the end of the following year. If her opportunity cost rate is 7.5 percent, how much will be in the account immediately after the third deposit is made? How much will be in the account at the end of three years if the deposits are made at the beginning of each year? 16.

Explanation / Answer

As per Chegg policy only 1 question per submission can be solved. Here comes the solution for first question FV of annuity The formula for the future value of an ordinary annuity, as opposed to an annuity due, is as follows: P = PMT x ((((1 + r) ^ n) - 1) / i) Where: P = the future value of an annuity stream PMT = the dollar amount of each annuity payment r = the effective interest rate (also known as the discount rate) i=nominal Interest rate n = the number of periods in which payments will be made Monthly payment 100 Nominal rate 6% Compounded rate= ((1+6%/12)^12)-1) 6.17% Time 5 years Future Value =PMT x ((((1 + r) ^ n) - 1) / i) Future Value = 12*100* ((((1 + 6.17%) ^ 5) - 1) / 6%) Future Value                       6,977 If deposits are made in beginning of month Future Value = PMT x ((((1 + r) ^ n) - 1) / i)*(1+i) Future Value = 6977*(1+6%) Future Value                       7,396

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