Question

Please use a calculator for the following problems and please show work

1) If you were to receive $20,000 each year for the next 10 years at 4% interest starting at the end if this year, determine what amount the annuity would accumulate to

2) If you were to receive $50,000 each year for 10 years (payments) starting now, determine what this annuity is worth right now assuming 4% interest

3) If you were to receive $1,000 each year for 10 years starting the end of 5 years, determine what this annuity is worth right now assuming 6% interest (deferred annuity)

Answer 1

0 Amount of Annunty = 80,000 (4% 109) - 20,000 pvIFA (4%10yn) = 20,000 X 8.1109 = 1622 18 O Amount of Annuity - 50,000 + (4% loyn) 50,000 X 8109 ③ -405545 Amount of Annuity = 1000 x (6% , syrs) =100044-2124 = 4212 2019-11-14 07:57