1.

Given:

Periodic Payment R = 1000

Rate r = 0.06

No. of Conversion per year m=4

t=8

k=1

Formula:
m
Periodic Rate j=
√(
k
1+
r
m )
−1

4
j=
√(
1
1+
0.06
4
−1)
j = 0.061364

Total number of Payments n= k x t

n=1x8

n=8

( 1+i )n −1
Future Value F=R
[ i ]
(1+ 0.061364 )8−1
F=1000 [ 0.061364 ]
F = 9946.05

2. Given:

Periodic Payment R = 38,973.79

Rate r = 0.08

No. of Conversion per year m=4

t=3

k=1
Formula:
m
Periodic Rate j=
√(
k
1+
r
m)−1

4
j=
√(
1
1+
0.08
4 ) −1

j = 0.287110

Total number of Payments n= k x t

n=1x3

n=3

( 1+i )n −1
Future Value F=R
i [ ]
( 1+ 0.082432 )3 −1
F=38973.76 [
0.082432 ]
F = 126824.16

Terminal Activity

Given:

Periodic Payment R = 2500

Rate r = 0.09

No. of Conversion per year m=1

t = 0.5

k=6

Formula:
m
Periodic Rate j=
√(
k
1+
r
m)−1

1
j=
√(
6
1+
0.09
1 ) −1

j = 0.669433
Total number of Payments n= k x t

n = 6 x 0.5

n=3

( 1+i )n −1
Future Value F=R
[ i ]
( 1+1.837675 )3−1
F=2500 [ 1.837675 ]
F = 289448.29