Question

Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given.

R=$3000, 9% interest compounded annually for 15 years 

What is the future value of the ordinary annuity?  (Round to the nearest cent.)

Answer 1

Answer of Part 1

Deposit	3000	p.a	C2
ROI	9%	cummulative	C3
No of payments	15		C4
Year	Deposit	Interest	Cumulative
1	3,000.00	270.00	3,270.00
2	3,000.00	564.30	6,834.30
3	3,000.00	885.09	10,719.39
4	3,000.00	1,234.74	14,954.13
5	3,000.00	1,615.87	19,570.00
6	3,000.00	2,031.30	24,601.30
7	3,000.00	2,484.12	30,085.42
8	3,000.00	2,977.69	36,063.11
9	3,000.00	3,515.68	42,578.79
10	3,000.00	4,102.09	49,680.88
11	3,000.00	4,741.28	57,422.16
12	3,000.00	5,437.99	65,860.15
13	3,000.00	6,197.41	75,057.57
14	3,000.00	7,025.18	85,082.75
15	3,000.00	7,927.45	96,010.20
Apply Formulae - -FV(C3,C4,C2,0,1)

Answer of Part 2

Deposit	8180	half yearly	I2
ROI	9.00%	cummulative semiannually	I3
No of payments	10		I4
Formulae of PV of payments is	-PV(I3,I4,I2,0,1)
PV of payments	$57,221.12