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Future Value of an Annuity of 1
Sandra has a savings account that has accumulated to $50,000. She started with $28,225,
and earned interest at 10% compounded annually. It took her five years to accumulate the
$50,000.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
Future value can be found if the interest rate (i), the number of periods (n), and the
present value (p) are known.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
The number of periods in a future value calculation may only be expressed in years.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
The future value of $100 compounded semiannually for 3 years at 12% equals $140.49.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total
of $7,210.65 in 5 years.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
An annuity is a series of equal payments occurring at equal intervals.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
The present value of an annuity table can be used to determine the value today of a
series of payments to be received in the future.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
A series of equal payments made or received at the end of each period is an ordinary
annuity.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
The present value of $5,000 per year for three years at 12% compounded annually is
$12,009.
Present Value of an Annuity of 1
Future Value of an Annuity of 1
With deposits of $5,000 at the end of each year, you will have accumulated $38,578 at the
end of the sixth year if the annual rate of interest is 10%.
Present Value of an Annuity of 1