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    Future Value of Annuity

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    What is the accumulated sum of each of the following streams of payments?

    a. $500 a year for 10 years compounded annually at 5 percent
    b. $100 a year for 5 years compounded annually at 10 percent
    c. $35 a year for 7 years compounded annually at 7 percent
    d. $25 a year for 3 years compounded annually at 2 percent

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    Solution Preview

    What is the accumulated sum of each of the following streams of payments?

    Note: FVIFA = future value factor for annuity (to be read from tables)

    a. $500 a year for 10 years compounded annually at 5 percent

    n= 10
    r= 5.00%
    FVIFA (10 periods, 5.% rate ) ...

    Solution Summary

    Calculates the future value of annuities.

    $2.19

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