Score:
50/50
Points
100
%

1.
Award: 10 out of 10.00 points
Determine the future value of the following single amounts: (Use
FV of $1
)
(Round "FV Factors" to 5
decimal places and final answers to the nearest dollar amount.)
Invested
Amount
Interest
Rate
No. of
Periods
Future
Value
1.
$10,000
4%
10
$
14,802.4
2.
12,000
9
8
$
23,910.72
3.
25,000
10
18
$
138,998
4.
45,000
5
8
$
66,485.7
rev: 06_15_2012
References
Worksheet
Learning Objective: 06-02
Compute the future value of a
single amount.
Determine the future value of the following single amounts: (Use
FV of $1
)
(Round "FV Factors" to 5
decimal places and final answers to the nearest dollar amount.)
Invested
Amount
Interest
Rate
No. of
Periods
Future
Value
1.
$10,000
4%
10
$
2.
12,000
9
8
$
3.
25,000
10
18
$
4.
45,000
5
8
$
14,802 ± .1%
23,911 ± .1%
138,998 ± .1%
66,485 ± .1%

rev: 06_15_2012
Explanation:

2.
Award: 10 out of 10.00 points
Answer each of the following independent questions.
1.
Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1)
$78,000 cash immediately, (2) $28,000 cash immediately and a six-period annuity of $8,600 beginning
one year from today, or (3) a six-period annuity of $15,200 beginning one year from today.
a.
Assuming an interest rate of 5%, determine the Present value for the above options. (Use
PVA of $1
(Round "PV Factors" to 5 decimal places and final answers to the nearest dollar amount.)
)

b.
Which option should Alex choose?

2.
The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December
31, 2022. Weimer will make annual deposits of $150,000 into a special bank account at the end of each
of 10 years beginning December 31, 2013. Assuming that the bank account pays 6% interest
compounded annually, what will be the fund balance after the last payment is made on December 31,
2022? (Use
FVA of $1
)
(Round "FV Factor" to 4 decimal places and final answer to the nearest
dollar amount.)
Fund balance, December 31, 2022
$
1,977,120
rev: 06_15_2012
References
Worksheet
Learning Objective: 06-06
Compute the future value of
both an ordinary annuity and
an annuity due.

Learning Objective:
06-03 Compute the
present value of a
single amount.
Learning Objective: 06-07
Compute the present value of
an ordinary annuity, an
annuity due, and a deferred
annuity.