f.1. Future Value of Annuity= Annuity Payment * [ {( 1+ Rate of Interest)^Time - 1 } / rate of Interest ]
= $ 100 * [( ( 1+4%)^3-1}/4%]
= $ 312.16
2. Present Value = Cash flows * Present Value of discounting Factor (Rate, time)
= $ 100 * 1/(1.04)^1 +$ 100 * 1/(1.04)^2+$ 100 * 1/(1.04)^3
= $ 277.51
3. Future Value of Annuity Due = Future Value of Annuity * ( 1 + rate of Interest)
= $ 312.16* (1+4%)
= $ 324.65
Present Value of Annuity Due = Present Value of Annuity * (1+rate of interest)
= $ 277.51* (1+4%)
= $ 288.61
f. 1. What is the future value of a 3-year, $100 ordinary annuity if the annual...
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