Future Value of Annuities: Ordinary Annuity and Annuity Due
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Find the future value of the following annuities. The first payment in these annuities is made at the end of year one. That is, they are are ordinary annuities.
A) $400 per years for 10 years at 10%
B) $200 per year for 5 years at 5%
C) $400 per year for 5 years at 5%
D) Now rework parts a and b and c assuming that payments are made at the beginning of each year; that is they are annuities due
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This solution is comprised of a detailed explanation to a multiple choice question about calculating the future value of the following annuities.
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Find the future value of the following annuities. The first payment in these annuities is made at the end of year one. that is, they are are ordinary annuities.
A) $400 per years for 10 years at 10%
FVA = W x (1 + i)n - 1 where FVA is the future value
i W is the amount required to deposit ...
Purchase this Solution
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