ANSWERS
                               to compounding vs. annuities quiz

Answers to #1, 2, and 5 were rounded to the nearest cent.
Answers to #3 and 4 were rounded to the nearest dollar.

 1.  [single payment, annual compounding, forward]

     FV = $200 * (1+0.03) ^ 10
     	= $200 * 1.03 ^ 10
	= $268.78

 2.  [single payment, monthly compounding, forward]

     FV = $200 * (1+0.03/12) ^ (10*12)
	= $200 * 1.0025 ^ 120
	= $269.87

 3.  [annuity, monthly compounding, forward]

     FV = $200 * ( ( (1+0.03/12) ^ (10*12) - 1 ) / (0.03/12) )
	= $200 * ( ( 1.0025 ^ 120 - 1 ) / 0.0025 )
	= $27,948.

 4.  [single payment, monthly compounding, backward]

     $180,000 = PV * (1+0.084/12) ^ (20*12)
     $180,000 = PV * 1.007 ^ 240
     PV	= $180,000 / 1.007 ^ 240
	= $33,744.

 5.  [annuity, monthly compounding, backward]

     $180,000 = PMT * ( ( (1+0.084/12) ^ (20*12) - 1 ) / (0.084/12) )
     $180,000 = PMT * ( ( 1.007 ^ 240 - 1 ) / 0.007 )
     PMT = $180,000 / ( ( 1.007 ^ 240 - 1 ) / 0.007 )
	 = $290.71