Compound annuity What is the accumalted sum of each of the

( Compound annuity) What is the accumalted sum of each of the following streams of payments ?

a. $510 a year for 9 years compounded annualy at 10 percent

b. $100 a year for 8 years compounded annualy at 8 perecent

c. $35 a year for 12 years compounded annualy at 12 percent

d. $21 a year for 4 years compounded annually at 4 percent

A. What is the accumalated sum of $510 a year for 9 years compounded annualy at 10 perent ? $() round to nearest cent

Same process for B,C and D

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

1.Future value=$510[(1.1)^9-1]/0.1

=$510*13.57947691

=$6925.53(Approx).

2.Future value=$100[(1.08)^8-1]/0.08

=$100*10.63662763

=$1063.66(Approx).

3.Future value=$35[(1.12)^12-1]/0.12

=$35*24.13313327

=$844.66(Approx).

4.Future value=$21[(1.04)^4-1]/0.04

=$21*4.246464

=$89.18(Approx).