Calculate the present value of the ordinary annuity


Question 1: The future value of $200 received today and deposited for three years in an account which pays semiannual interest of 8 percent is ______.

Question 2: The future value of $100 received today and deposited at 6 percent for four years is..??

Question 3: Calculate the present value of the annuity assuming that it is an ordinary annuity.

Case    Amount of Annuity Interest Rate Period / Years
A     $14,000         9%      3
B     $17,500        13%    15
C         $975        18%      7
D      $1,127,000    4%      9
E     $10,000          7%      3

Question 4: For each of the cases shown below in the table, calculate the present value of the cash flow:

Case Single Cash Flow Interest Rate End of Periods / Years
A     $13,000    10%      5
B     $34,000    17%    25
C     $16,000     6%     18
D   $210,000    15%     15
E     $90,000     20%      9

Question 5: For each of the cases shown below in the table, calculate the future value of the cash flow:

Case Single Cash Flow Interest Rate End of Periods / Years
A $3,000 10% 7
B $44,000 12% 5
C $6,000 8% 10
D $27,000 16% 12
E $99,000 20% 6

Calculate the above future values in questions above  as semi annual and quarterly compounding.

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Finance Basics: Calculate the present value of the ordinary annuity
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