# Contemporary Mathematics

Mathematics

## Quiz 12 :Annuities

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The table factor for an annuity due is found by one period to the number of periods of the annuity and then subtracting from the resulting table factor.
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The table factor for the annuity due is found by adding one period to the number of periods of the annuity and then subtracting 1.00000 from the resulting table factor.

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Use Table 12-1 to calculate the future value of the following annuities due.
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To calculate future value (Amount) of an ordinary Annuity, use the following steps.
1. Calculate the interest rate per period for the annuity (nominal rate periods per year)
2. Determine the number of periods of the annuity (years periods per year)
3. From table 12-1, locate the ordinary annuity table factor at the intersection on the rate-per-period column and the number-of-period row.
4. Calculate the future value of the ordinary annuity.
Future value ordinary annuity table factor Annuity payment
(Ordinary annuity)
Here,
1. Number of periods of the annuity due for a total is
2. Interest rate per period is
.
3. The ordinary annuity table factor at the intersection of the rate column and the periods row is
.
4. Subtract
from the table factor:
Ordinary annuity table factor
Annuity due table factor.
5. Future value
Annuity due table factor
Annuity payment.
Therefore the required future value of the annuity due is
.

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Write the formula for calculating the future value of an ordinary annuity when using a calculator with an exponential function, yx , key.
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The formula for calculating the future value of an ordinary annuity when using a calculator with an exponential function
, key is
.

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Use Table 12-2 to calculate the present value of the following ordinary annuities.
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Use Table 12-1 to calculate the future value of the following ordinary annuities.
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The total amount of the annuity payments and the accumulated interest on those payments is known as the value of an annuity.
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Write the formula for calculating the future value of an annuity due when using a calculator with an exponential function, ( yx ), key.
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Use Table 12-2 to calculate the present value of the following ordinary annuities.
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Use Table 12-1 to calculate the amount of the periodic payments needed to amount to the financial objective (future value of the annuity) for the following sinking funds.
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Use Table 12-1 to calculate the future value of the following ordinary annuities.
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Use Table 12-1 to calculate the amount of the periodic payments needed to amount to the financial objective (future value of the annuity) for the following sinking funds.
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Use Table 12-2 to calculate the present value of the following annuities due.
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The table factor for the present value of an annuity due is found by one period from the number of periods of the annuity and then adding to the resulting table factor.
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Use Table 12-2 to calculate the present value of the following annuities due.
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Use Table 12-1 to calculate the future value of the following annuities due.
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An annuity due is paid or received at the of each time period.
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Payment or receipt of equal amounts of money per period for a specified amount of time is known as a(n)
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The lump sum amount of money that must be deposited today to provide a specified series of equal payments (annuity) in the future is known as the value of an annuity.
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