HUGE problem with future value and annuities (1 Viewer)

[partymaster01]

Well....

throughout the year this has been the easiest topic as with the graphics calculator you just use the TVM mode...

but just as i was doing another past paper today i couldn't get any of the future value questions right

so i went into my maths book and flipped through to the pages with future value and annuities questions are i kept getting the answer wrong by $300.

I have no idea what is wrong because im entering the data correctly this is what im doing

Also is there a special mode your calculator needs to be put on?

Thanks

Question:

Bruce invests $1500 at the end of each year for 8 years in an account earning 6.9% p.a.
What is the total value of his investment at the end of 10 years?

What i did

n = 8
I% = 6.9
PV = 0
PMT = 1500
FV = 0
P/Y = 1
C/Y = 1

When i do that i get some random minus answer like

-169455

 

[Crazywheels]

How do you do that ?? I worked out future value for the first 8 years then put the answer to that into the compound interest formula for 2 years. and got




ANS $17,523.54

Is this correct

 

[NEVAGIVEUP]

Did it mention a specific compounding rate, such as compounded anually or monthly?

Try using a scientific calculator, you don't want the same mistake tomorrow.

Also, remember that the compounding period is not '8', as the question asks for '10', so therefore must 10

 

[Smithyo]

just worked it out and got $17523.53....what's the answer?? If it's correct I'll post up the working out

 

[michael1990]

This is a really badly worded question.

I got $17 523.54

Could you scan the whole question up for me to look at please?

Attached is my working out.

 

[NEVAGIVEUP]

But how do we know that for the two years after the 8 year annuity, that the money was placed as a lump sum; there is no verification that the money is still considered a lump sum or an annuity; do i make sense? :S

 

[michael1990]

But how do we know that for the two years after the 8 year annuity, that the money was placed as a lump sum; there is no verification that the money is still considered a lump sum or an annuity; do i make sense? :S

Yes.
But if you are changing the amount of time you are saying he is putting $1500 in those 2 years so it changes the whole question.
As i said it is a badly worded question, if the OP scans the whole question we can make sense of it.

 

[tahlsy31191]

Did you remember order of operations? You MUST use brackets to get the right answer.

 

[michael1990]

Did you remember order of operations? You MUST use brackets to get the right answer.

What the hell are you talking about?

 

[tahlsy31191]

What the hell are you talking about?

With older calculators you must use brackets in getting your answer.

 

[michael1990]

With older calculators you must use brackets in getting your answer.

But what does that have anything to do with the thread?

 

[tahlsy31191]

But what does that have anything to do with the thread?

Because... in answering annuities if you have an older calculator you get the wrong answer if you don't use brackets thus it may be the reason that person trying to do this question is not getting the right answer... It is not rocket science.

 

[michael1990]

Because... in answering annuities if you have an older calculator you get the wrong answer if you don't use brackets thus it may be the reason that person trying to do this question is not getting the right answer... It is not rocket science.

But we haven't got wrong calculations.
So please do explain what the point of that statement was for?

Or work out the question?

 

[designerbaby]

This is a really badly worded question.

I got $17 523.54

Could you scan the whole question up for me to look at please?

Attached is my working out.

I got $17,523.54 aswell!