# Award: 10 out of 1000 points Determine the future value of...

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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.