AssigX Chapter 14 Liabilees Bo C rotected prod/assets/do/7/d07fcOc4369-4b65-b647
ID: 2568527 • Letter: A
Question
AssigX Chapter 14 Liabilees Bo C rotected prod/assets/do/7/d07fcOc4369-4b65-b647-4betaa 0245ep d?-gda-e sts 151041 6223-exp 1510502623-ad-%2fprotected%2fprod Future Value of 1:4-(1 +ir 40% 4 5% 50% 5.5% 60% 70% 11015000 1040000 1.045000 050000 1055000 1060000 00000 2 1030225 1081600 1092025 1.10200 1.113025 1.123600 1.144 3 1045678 1124864 1.141166 1,157625 1.174241 1.191016 1.225043 41.061364 1169859 1.192519 1.215500 1.238825 1262477 131 5 1.077284 1.216653 1246182 1.276282 1.306960 1.338226 1.402552 6 1.093443 1.265319 1302260 1340096 1.378843 1.418519 1.500730 7 1.109845 1315932 1.360862 1.407 100 1454679 1503630 1.60578 8 1.126493 13689 1422101 1477455 1534687 .593848 1718186 9 1143390 14233 12 1486095 1551328 1619094 1689479 1838459 10 1.160541 1.480244 1552969 1.628805 1708144 1.790848 1.967151 11 1177949 1539454 1622853 1710339 1.802092 1898299 2104852 12 1195618 1 601032 1 695881 1795856 1.90120 2012196 2 252192 13 : 1 213552 ,005074 1772 196 1sas649 2005774 2132928 2409845 14 1.231756 1731676 1851945 1.979932 2.116091 2260904 2.578534 15 1250232 1 800944 1.935282 2 08928 2232476 2396558 2 759032 16 1268986 1.872981 2.022370 2.182875 2 355263 2 540352 2952164 17 1288020 1.947900 2.113377 2292021 2 484802 2.692773 3.158815 8 1307341 2 025817 2 208479 2 406619 2621466 2 854339 3 379932 19 1.326951 2.106849 2.307860 2 526950 2765647 3 025600 3.616528 20 1.346855 2191123 2411714 2653298 2.917757 3.207135 3.869684 21 1367058 2278768 2 520241 278563 3 078234 3 399564 4 140562 22. 1387564 2.369919 2633652 2925261 3 247537 3.603537 23 1408377 2 464716 2752166 301524 3426152 3.819750 4740530 24 1 429503 2 63304 2 826014 3 225100 3614590 4048935 3072362 25 1450945 2 665836 3 005434 3 386355 3.813392 4.291871 5 427433 26 1472710 2772470 3.140679 3 555673 4.023129 4 549383 5 807353 271494800 2 883369 3 282013 3733456 42444 4822346 6 21386 291539981 3.118651 3 584036 4116136 4724124 5418388 7114257 563040 3 243398 3 745318 4 321942 4983951 5743491 7612255 144 3 5 6 7 0Explanation / Answer
Question - 1
n = 10 years and r = 0.10 compounded annually
FVA = Future value of annuity = [(1 + r )n - 1 ] / r = [ (1.10)10 - 1 ] / 0.10 = 15.937424601
So required future value = 20000 * 15.937424601 = 318748.49...............final answer
Question - 2
n = 20 and r = 0.10 / 2 = 0.05 ( half year compounding)
FVA = [ (1.05)20 - 1 ] / 0.05 = 33.065954
So required future value = 15000 * 33.065954 = 495989.31...............final answer
Question - 3
n = 20 and r = 0.05
Here, ............. comparied to question - 2, we have annuity immediate. so same formula with ( 1+ r) multiple is needed.
495989.31 ( 1.05) = 520788.78.................final answer