a) What is the present value of an ordinary annuity of $405 per month for 4 years at 6% interest compounded monthly? (b) What is the present value of this investment if it is an annuity due?
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(a) What is the
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- What is the future value of a 7%, 5 year ordinary annuity that pays 300 each year? If this was an annuity due, what would its future value be?What is the future of a 7%, 5-years ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?Find the present value of a 5-year annuity due if the annual payments are $600 and the interest rate is 11%. What is the difference between the present value of the annuity and the present value of the ordinary 5-year annuity?
- If the future value of an ordinary, 6-year annuity is $7,500 and interest rates are 7.5 percent, what is the future value of the same annuity due?what;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate is 6.8% ?4. a.) What is the future value of an annuity due with an annual payment of $1,500 for four years at 3% annual interest? b.) Find the total investment and c.) the total interest earned.
- What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6 percent ? Answer: Future Value of Annuity is $8749.23 Qusetion: What is the future value of the same annuity due?If the present value of an ordinary, 6- year annuity is $7,200 and interest rates are 7.5 percent, what's the present value of the same annuity due?Suppose that an individual invests $2,500 at the end of each of the next 6 years and earns an annual interest rate of 8%. Calculate the present value of this series of annuity payments B)Suppose that an individual invests $2,500 at the beginning of each of the next 6 years and earns an annual interest rate of 8%. Calculate the value of this series of annuity payments. How does this result compare with the solution to Part A?
- If the future value of an ordinary, 7-year annuity is $7,900 and interest rates are 9.0 percent, what’s the future value of the same annuity due?Suppose you are going to receive $13,500 per year for five years. The interest rate is 8.4%a. What is the present value of the payments if they are in the form of an ordinary annuity? What is the present value if the payments are an annuity due?b. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? What if the payments are annuity due?c. Which has the highest present value (future value), the ordinary annuity or annuity due?If the present value of an ordinary, 6-year annuity is $9,400 and interest rates are 9.5 percent, what’s the present value of the same annuity due?