Question

I need 9-8 through 9-11 answered using step by step. Please and thank you.

ind the future value of the following annuities due: a. $400 per year for 10 years at 10 percent b. $200 per year for five years at 5 percent .9 Find the present value of the following ordinary annuities: a. $400 per year for 10 years at 10 percent $200 per year for five years at 5 percent g-10 Find the present value of the following annuities due: b. a. $400 per year for 10 years at 10 percent b. $200 per year for five years at 5 percent 9-11 What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7 percent? If interest rates in general were to double and the appropriate discount rate rose to 14 percent, what would happen to the preser value of the perpetuity

Answer 1

9-8)

a)

Future value of an annuity due Here, 4 A Interest rate per annum 6 B Number of vears 7| C|Number of compoundings per per annum 8 A+C Interest rate per period (r) 9 BxC Number of periods (n) 10 10) 1 10 Payment per period (P) 400 12 Future value of an annuity due$ 7,012.47 ( 1+10%) x400x( (1+10%) ^ 10-1)+10%

b)