(Computation of Future Values and Present Values) Using the appropriat

QUESTION

(Computation of Future Values and Present Values) Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)
(a) What is the future value of $9,000 at the end of 5 periods at 8% compounded interest?
(b) What is the present value of $9,000 due 8 periods hence, discounted at 11%?
(c) What is the future value of 15 periodic payments of $9,000 each made at the end of each period and compounded at 10%?
(d) What is the present value of $9,000 to be received at the end of each of 20 periods, discounted at 5% compound interest?
a) n = 5, i= 8% Future
Value = Present Value x Future value factor of Single Sum (1.08)^5 Future
Value = $
9,000 x 1.46933 Future
Value = $13,224 b) n = 8, i= 11% Present
Value = Future Value x Present value factor of
Single Sum 1/(1.11)^8 Present Value = $ 9,000 x .43393 Present Value = $3,905 c) n = 15, i= 10% Future Value of Ordinary Annuity (OA) = Periodic
Payments x Future¦

alue Factor-OA Future Value of OA = $ 9,000 x 31.77248 Future Value of OA = $285,952 d) n = 20, i= 5% Present Value of Ordinary Annuity = Periodic
Receipts x Present value Factor-OA Present Value of OA = $ 9,000 x 12.46221 Present Value of OA = $112,160

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