Why not just FV

6-20 (a) 0 1 2 3 4 5 20

6%

(100.00) (100.00) (100.00) (100.00) (100.00)

597.53

FVAi,n = PMT x FVIFAi,n+1 - PMT

FVA6,5 = PMT x FVIFA6,5+1 - PMT

FVA6,5 = 100 x 6.97532 - 100

FVA6,5 = 597.532

If we just use calculate the Future Value for this annuity due, we will be getting value at the end of 5th period.
However, the value required is at the end of 20th period

6-23 (b) 0 1 2 3 #REF!

#REF! #REF! #REF! #REF!

PV FV
#REF! #REF!

Page 1 of 8
Why not just FV

Using the formula to solve:

- PMT

50.4229 -

Using Spreadsheet to solve:

Using Financial Calculator to solve:

#REF! #REF! #REF! #REF!

N PV PMT FV
#REF!

Page 2 of 8
Why not just FV

6-23 (c) 0 1 2 3 #REF!

#REF! #REF! #REF! #REF!

PV FV
#REF! #REF!

Using the formula to solve:

9.8181

Using Spreadsheet to solve:

Using Financial Calculator to solve:

#REF! #REF! #REF! #REF!

N PV PMT FV
#REF!

6-23 (c-1) 0 1 2 3 #REF!

#REF! #REF! #REF! #REF!

PV FV
#REF! #REF!

Page 3 of 8
Why not just FV

Using the formula to solve:

45.7620

Using Spreadsheet to solve:

Using Financial Calculator to solve:

#REF! #REF! #REF! #REF!

N PV PMT FV
#REF!

Page 4 of 8
Alternate Method 6-20 ; Either by finding Future Values individually then summing them up to find the total (required) Future Value

6-20 (a) 0 1 2 3 4 5 20

6%

(100.00) (100.00) (100.00) (100.00) (100.00)

FV
100 x (1.06)16
254

100 x (1.06)17
269

100 x (1.06)18
285

100 x (1.06)19
303

100 x (1.06)20
321

We can calculate the required Future Value of this annuity due, by calculating Future
Total 1,432
Value of each individual payments & then totaling them up.

6-23 (b) 0 1 2 3 #REF!

#REF! #REF! #REF! #REF!

PV FV
#REF! #REF!

Page 5 of 8
Alternate Method 6-20 ; Either by finding Future Values individually then summing them up to find the total (required) Future Value

Using the formula to solve:

- PMT

50.4229 -

Using Spreadsheet to solve:

Using Financial Calculator to solve:

#REF! #REF! #REF! #REF!

N PV PMT FV
#REF!

Page 6 of 8
Alternate Method 6-20 ; Either by finding Future Values individually then summing them up to find the total (required) Future Value

6-23 (c) 0 1 2 3 #REF!

#REF! #REF! #REF! #REF!

PV FV
#REF! #REF!

Using the formula to solve:

9.8181

Using Spreadsheet to solve:

Using Financial Calculator to solve:

#REF! #REF! #REF! #REF!

N PV PMT FV
#REF!

6-23 (c-1) 0 1 2 3 #REF!

#REF! #REF! #REF! #REF!

PV FV
#REF! #REF!

Page 7 of 8
Alternate Method 6-20 ; Either by finding Future Values individually then summing them up to find the total (required) Future Value

Using the formula to solve:

45.7620

Using Spreadsheet to solve:

Using Financial Calculator to solve:

#REF! #REF! #REF! #REF!

N PV PMT FV
#REF!

Page 8 of 8