Exercise A3-20 (Algorithmic) Future Values of an Annuity Use Future Value Tables or your calculator to complete the requirements...

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Finance

Exercise A3-20(Algorithmic)
Future Values of an Annuity
Use Future ValueTables or your calculator to complete the requirements below.
On December 31, 2020,you sign a contract to make annual deposits of $5,200 in aninvestment account that earns 10%. The first deposit is made onDecember 31, 2020.
Required:
1.Calculate what the balance in this investment account will be justafter the seventh deposit has been made if interest is compoundedannually. Round your answer to the nearest cent, if rounding isrequired.
$
2.Determine how much interest will have been earned on thisinvestment account just after the seventh deposit has been made ifinterest is compounded annually. Round your answer to the nearestcent, if rounding is required.
$
Exercise A3-11(Algorithmic)
Practice with Tables
Use Future ValueTables and Present Value Tables, or your calculator, to completethe requirements below.
Required:
Round your answers tothe nearest cent, if rounding is required.
a.Determine the future value of a single cash flow of $5,480 thatearns 7% interest compounded annually for 10 years.
$
b.Determine the future value of an annual annuity of 10 cash flows of$500 each that earns 7% compounded annually.
$
c.Determine the present value of $5,480 to be received 10 years fromnow, assuming that the interest (discount) rate is 7% peryear.
$
d.Determine the present value of an annuity of $500 per year for 10years for which the interest (discount) rate is 7% per year and thefirst cash flow occurs one year from now.
$
Feedback
12)b. Determine the present value of an annuityof seven cash flows of $1,340 each (one at the end of each of thenext 7 years) for which the interest (discount) rate is 8% peryear.

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A3 20 1 Future value F V of annual deposits Annual deposits 1 in 1 i Here i rate 10 or 010 n years 7 years Annual deposits 5200 Now F V Of annual deposits 5200 1 0107 1 010 F V Of annual deposits 5200 09487 010 F V Of annual deposits 5200 94872 F V of annual deposits 4933329 2 Interest earned See Answer

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Exercise A3-20(Algorithmic)Future Values of an AnnuityUse Future ValueTables or your calculator to complete the requirements below.On December 31, 2020,you sign a contract to make annual deposits of $5,200 in aninvestment account that earns 10%. The first deposit is made onDecember 31, 2020.Required:1.Calculate what the balance in this investment account will be justafter the seventh deposit has been made if interest is compoundedannually. Round your answer to the nearest cent, if rounding isrequired.$2.Determine how much interest will have been earned on thisinvestment account just after the seventh deposit has been made ifinterest is compounded annually. Round your answer to the nearestcent, if rounding is required.$Exercise A3-11(Algorithmic)Practice with TablesUse Future ValueTables and Present Value Tables, or your calculator, to completethe requirements below.Required:Round your answers tothe nearest cent, if rounding is required.a.Determine the future value of a single cash flow of $5,480 thatearns 7% interest compounded annually for 10 years.$b.Determine the future value of an annual annuity of 10 cash flows of$500 each that earns 7% compounded annually.$c.Determine the present value of $5,480 to be received 10 years fromnow, assuming that the interest (discount) rate is 7% peryear.$d.Determine the present value of an annuity of $500 per year for 10years for which the interest (discount) rate is 7% per year and thefirst cash flow occurs one year from now.$Feedback12)b. Determine the present value of an annuityof seven cash flows of $1,340 each (one at the end of each of thenext 7 years) for which the interest (discount) rate is 8% peryear.