# What is the accumulated sum of each of the following streams of payments?

What is the accumulated sum of each of the following streams of payments?

a. $500 a year for 10 years compounded annually at 5 percent

b. $100 a year for 5 years compounded annually at 10 percent

c. $35 a year for 7 years compounded annually at 7 percent

d. $25 a year for 3 years compounded annually at 2 percent

#### Solution Preview

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Annuity= $500

Therefore, future value= $6,288.95 =500x12.577893

Answer: $6,288.95

b. $100 a year for 5 years compounded annually at 10 percent

n= 5

r= 10.00%

FVIFA (5 periods, 10.% rate ) ...