Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Use the table "Future Value of an Ordinary Annuity for [tex]$\$[/tex]1.00[tex]$ per Period" on p. 39 to complete the table below.

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|}
\hline
Deposit & Rate & Compounded & Years & \begin{tabular}{l} Number \\ of \\ Periods \end{tabular} & \begin{tabular}{l} Rate \\ per \\ Period \end{tabular} & \begin{tabular}{l} Table \\ Value \end{tabular} & \begin{tabular}{l} FV of \\ Ordinary \\ Annuity \end{tabular} & \begin{tabular}{l} Interest \\ Earned \end{tabular} & \begin{tabular}{l} FV of \\ Annuity Due \end{tabular} \\
\hline
$[/tex]\[tex]$5,000$[/tex] & [tex]$6.00\%$[/tex] & Quarterly & 2 & a. & b. & c. & d. & e. & f. \\
\hline
[tex]$\$[/tex]800[tex]$ & $[/tex]4.00\%[tex]$ & Semiannually & 6 & a. & b. & c. & d. & e. & f. \\
\hline
$[/tex]\[tex]$2,000$[/tex] & [tex]$4.00\%$[/tex] & Annually & 10 & a. & b. & c. & d. & e. & f. \\
\hline
[tex]$\$[/tex]1,000[tex]$ & $[/tex]6.00\%$ & Monthly & 3 & a. & b. & c. & d. & e. & f. \\
\hline
\end{tabular}


Sagot :

To complete the table using the provided numerical results, let us break down each entry step-by-step:

1. [tex]$\$[/tex] 5,000[tex]$ deposit at $[/tex]6.00\%[tex]$, compounded quarterly, for $[/tex]2[tex]$ years: - Number of Periods: \( 4 \times 2 = 8 \) - Rate per Period: \( 0.06 / 4 = 0.015 \) - Table Value: \( 8.432839106353745 \) - FV of Ordinary Annuity: \( 5000 \times 8.432839106353745 = 42164.195531768724 \) - Interest Earned: \( 42164.195531768724 - (5000 \times 8) = 2164.1955317687243 \) - FV of Annuity Due: \( 42164.195531768724 \times (1 + 0.015) = 42796.658464745255 \) 2. $[/tex]\[tex]$ 800$[/tex] deposit at [tex]$4.00\%$[/tex], compounded semiannually, for [tex]$6$[/tex] years:
- Number of Periods: [tex]\( 2 \times 6 = 12 \)[/tex]
- Rate per Period: [tex]\( 0.04 / 2 = 0.02 \)[/tex]
- Table Value: [tex]\( 13.412089728127274 \)[/tex]
- FV of Ordinary Annuity: [tex]\( 800 \times 13.412089728127274 = 10729.671782501819 \)[/tex]
- Interest Earned: [tex]\( 10729.671782501819 - (800 \times 12) = 1129.6717825018186 \)[/tex]
- FV of Annuity Due: [tex]\( 10729.671782501819 \times (1 + 0.02) = 10944.265218151855 \)[/tex]

3. [tex]$\$[/tex] 2,000[tex]$ deposit at $[/tex]4.00\%[tex]$, compounded annually, for $[/tex]10[tex]$ years: - Number of Periods: \( 1 \times 10 = 10 \) - Rate per Period: \( 0.04 / 1 = 0.04 \) - Table Value: \( 12.006107122958609 \) - FV of Ordinary Annuity: \( 2000 \times 12.006107122958609 = 24012.214245917217 \) - Interest Earned: \( 24012.214245917217 - (2000 \times 10) = 4012.2142459172173 \) - FV of Annuity Due: \( 24012.214245917217 \times (1 + 0.04) = 24972.702815753906 \) 4. $[/tex]\[tex]$ 1,000$[/tex] deposit at [tex]$6.00\%$[/tex], compounded monthly, for [tex]$3$[/tex] years:
- Number of Periods: [tex]\( 12 \times 3 = 36 \)[/tex]
- Rate per Period: [tex]\( 0.06 / 12 = 0.005 \)[/tex]
- Table Value: [tex]\( 39.33610496468294 \)[/tex]
- FV of Ordinary Annuity: [tex]\( 1000 \times 39.33610496468294 = 39336.10496468294 \)[/tex]
- Interest Earned: [tex]\( 39336.10496468294 - (1000 \times 36) = 3336.1049646829415 \)[/tex]
- FV of Annuity Due: [tex]\( 39336.10496468294 \times (1 + 0.005) = 39532.78548950635 \)[/tex]

Here is the completed table:

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|}
\hline Deposit & Rate & Compounded & Years & \begin{tabular}{l}
Number \\
of \\
Periods
\end{tabular} & \begin{tabular}{l}
Rate \\
per \\
Period
\end{tabular} & \begin{tabular}{l}
Table \\
Value
\end{tabular} & \begin{tabular}{l}
FV of \\
Ordinary \\
Annuity
\end{tabular} & \begin{tabular}{l}
Interest \\
Earned
\end{tabular} & \begin{tabular}{l}
FV of \\
Annuity Due
\end{tabular} \\
\hline[tex]$\$[/tex] 5,000[tex]$ & $[/tex]6.00 \%[tex]$ & Quarterly & 2 & 8 & 0.015 & 8.432839106353745 & 42164.195531768724 & 2164.1955317687243 & 42796.658464745255 \\ \hline$[/tex]\[tex]$ 800$[/tex] & [tex]$4.00 \%$[/tex] & Semiannually & 6 & 12 & 0.02 & 13.412089728127274 & 10729.671782501819 & 1129.6717825018186 & 10944.265218151855 \\
\hline[tex]$\$[/tex] 2,000[tex]$ & $[/tex]4.00 \%[tex]$ & Annually & 10 & 10 & 0.04 & 12.006107122958609 & 24012.214245917217 & 4012.2142459172173 & 24972.702815753906 \\ \hline$[/tex]\[tex]$ 1,000$[/tex] & [tex]$6.00 \%$[/tex] & Monthly & 3 & 36 & 0.005 & 39.33610496468294 & 39336.10496468294 & 3336.1049646829415 & 39532.78548950635 \\
\hline
\end{tabular}