For an ordinary annuity with 5 annual payments of $100 and a 10% interest rate, for how many years will the first payment earn interest, and what is the compounded value of this payment at the end? (4 years, $146.41) Answer these questions for the fifth payment. (0 years, $100) Assume that you plan to buy a condo 5 years from now, and you estimate that you can save $2,500 per year toward a down payment. You plan to deposit the money in a bank that pays 4% interest, and you will make the first deposit at the end of this year. How much will you have after 5 years? ($13,540.81) How would your answer change if the bank's interest rate were increased to 6%, or decreased to 3% ($14,092.73; $13,272.84)
For an ordinary
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