Number of Payments or Years 5 20 26 340 Annual Interest Rate 9% 15% 2% 1.2% Present Value 0 0 0 0 Annuity $281.84 $1,447.13 $771.39 $550.52 Future Value ? ? ? ?
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- What is a deferred ordinary annuity? How does it differ from one that is not deferred? Draw a time line of each.Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:Explain how the future value of an ordinary annuityinterest table is converted to the future value of an annuitydue interest table.
- Calculate the future value of an annuity, with case A being an ordinary annuity and case B being an annuity due. SEE PIC for NUMBER DETAILSquestion: Identify the different types of annuities, calculate the present value and future value of both an ordinary annuity and an annuity due, and calculate the relevant annuity payments.Define Future Value of an Annuity Due.
- Which of the following cannot be calculated? Select one: a. the interest rate on perpetuity given the present value and payment amount b. the present value of an annuity due c. the present value of a perpetuity d. the future value of a perpetuityFind the future value and the present value of each ordinary annuity.Compute the present value of an ordinary annuity, an annuity due, and a deferred annuity.
- What is the formula in finding the present value of a deferred annuity.An annuity is a method for calculating the future value of a single payment or a series of payments. What do you think?What are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and an “annuity due.” Explain how the present value of an ordinary annuity interest table is converted to the present value of an annuity due interest table.