Homework Answers
a.Future value of annuity=Annuity[(1+rate)^time period-1]/rate
=150[(1.04)^61-1]/0.04
=150*248.510313
=37276.55(Approx).
b.Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=500[1-(1.11)^-26]/0.11
=500*8.48805826
=4244.03(Approx).
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