10. Suppose you are going to receive $19,000 per year for 5 years. The appropriate interest...
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10. Suppose you are going to receive $19,000 per year for 5 years. The appropriate interest rate is 9 percent. |
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Requirement 1: |
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(a) |
What is the present value of the payments if they are in the form of an ordinary annuity? |
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(b) |
What is the present value if the payments are an annuity due? |
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Requirement 2: |
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(a) |
Suppose you plan to invest the payments for 5 years, what is the future value if the payments are an ordinary annuity? |
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(b) |
Suppose you plan to invest the payments for 5 years, what is the future value if the payments are an annuity due? |
Homework Answers
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