What’s the present value of a 5-year ordinary annuity of $100 plus an additional$500 at the end of Year 5 if the interest rate is 6%? What is the PV if the $100 paymentsoccur in Years 1 through 10 and the $500 comes at the end of Year 10?($794.87, $1,015.21)

4. (Present value of an ordinary annuity) What is the present value of the following annuities? c. $280 a year for 7 years discounted back to the present at 6 percent d. $500 a year for 10 years discounted back to the present at 10 percent

Ques 1 and 2

Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)