Suppose you are going to receive $13,200 per year for five years. The appropriate interest rate is 8.1 percent.
a-1 What is the present value of the payments if they are in the form of an ordinary annuity?
a-2 What is the present value if the payments are an annuity due?
b-1 Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity?
b-2 Suppose you plan to invest the payments for five years. What is the future value if the payments are an annuity due?
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Suppose you are going to receive $13,200 per year for five years. The appropriate interest rate is 8...
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