1. example 4
Annuities
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Chapter 8.4
2009 PBLPathways

2. Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $

3. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

4. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

5. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

6. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

7. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

8. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

9. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000

10. Value at the end of 5 years
Show that if regular payments of $1000 are made at the end of each year for 5 years into
an account that pays interest at 10% per year compounded annually, the future value of
this annuity is $
Payment
Value at the end of 5 years 1
1000 (1.10)4 2
1000 (1.10)3 3
1000 (1.10)2 4
1000 (1.10)1 5
1000