Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $900/semiannual period for 15 years at 4%/year compounded semiannually

Question

1) Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)

$900/semiannual period for 15 years at 4%/year compounded semiannually

2) Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)

$1100/semiannual period for 8 years at 3.5%/year compounded semiannually

3) Find the present value of the ordinary annuity. (Round your answer to the nearest cent.)

$2000/semiannual period for 8 years at 5%/year compounded semiannually

Answer 1

It is much easier to show this in Microsoft Excel, though here is how I would do this in said program:

Future Value = Sum of (Each Payment x 1 + interest rate ) ^ t where t is the terms left.

In example one, you are starting with t as 30 (15 years x 2 terms in each year) and counting backdowns down to zero.

How this looks is ($900 x 1.04 ^ 30) + ($900 x 1.04 ^ 29) and so on. Total FV is $53,395.50.

Question Two: $38,647.17

Question Three: $98,364.45