# Answer the following questions. Each case is independent of the others. 1. What is the future...

## Question:

Answer the following questions. Each case is independent of the others.

1. What is the future value of 22 periodic payments of $5,270 each made at the beginning of each period and compounded at 8%? 2. What is the present value of$4,010 to be received at the beginning of each of 29 periods, discounted at 5% compound interest?

3. What is the future value of 15 deposits of $2,330 each made at the beginning of each period and compounded at 10%? 4. What is the present value of 6 receipts of$3,170 each received at the beginning of each period, discounted at 9% compounded interest?

## Annuity:

An annuity is a series of fixed payments or receipts which are periodically made either monthly, quarterly, semi-annually or annually over a fixed period. When we make a series of fixed payments over time such as loan or rent payments or receive a series of payments over a period such as interest on bonds, then such payments or receipts are called annuities. An annuity may be either ordinary annuity or annuity due. Ordinary Annuity are payments required at the end of each period. Annuity due are payments required at the beginning of each period.

1. The future value of 22 periodic payments of $5,270 each made at the beginning of each period and compounded at 8% is$315,635.