Homework Answers
| PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)] |
| C = Cash flow per period |
| i = interest rate |
| n = number of payments |
| PV= 21000*((1-(1+ 8/100)^-4)/(8/100)) |
| PV = 69554.66 |
| FVAnnuity Due = c*(((1+ i)^n - 1)/i)*(1 + i ) |
| C = Cash flow per period |
| i = interest rate |
| n = number of payments |
| 69554.66= Cash Flow*(((1+ 8/100)^14-1)/(8/100))*(1+8/100) |
| Cash Flow = 2659.62 |
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