Score: 0 of 16 pts P5-21 (similar to) 13 of 15 (10 complete) HW Score: 46.03%,...
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Score: 0 of 16 pts P5-21 (similar to) 13 of 15 (10 complete) HW Score: 46.03%, 29 of 63 pts Question Help Time value-Annuities Personal Finance Problem Marian Kirk wishes to select the better of two 11-year annuities. Annuity 1 is an ordinary annuity of $1,860 per year for 11 years. Annuity 2 is an annuity due of $1,770 per year for 11 years. a. Find the future value of both annuities at the end of year 11, assuming that Marian can eam (1) 5% annual interest and (2) 10% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 11 for both the (1) 5% and (2) 10% interest rates.. c. Find the present value of both annuities, assuming that Marian can eam (1) 5% annual interest and (2) 10% annual interest. d. Use your findings in part e to indicate which annuity has the greater present value for both the (1) 5% and (2) 10% interest rates. e. Briefly compare, contrast, and explain any differences between your findings using the 5% and 10% interest rates in parts b and d. a. The future value of Annuity 1 at 5% interest is $ (Round to the nearest cent.) Score: 0 of 16 pts P5-21 (similar to) 13 of 15 (10 complete) HW Score: 46.03%, 29 of 63 pts Question Help Time value-Annuities Personal Finance Problem Marian Kirk wishes to select the better of two 11-year annuities. Annuity 1 is an ordinary annuity of $1,860 per year for 11 years. Annuity 2 is an annuity due of $1,770 per year for 11 years. a. Find the future value of both annuities at the end of year 11, assuming that Marian can eam (1) 5% annual interest and (2) 10% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 11 for both the (1) 5% and (2) 10% interest rates.. c. Find the present value of both annuities, assuming that Marian can eam (1) 5% annual interest and (2) 10% annual interest. d. Use your findings in part e to indicate which annuity has the greater present value for both the (1) 5% and (2) 10% interest rates. e. Briefly compare, contrast, and explain any differences between your findings using the 5% and 10% interest rates in parts b and d. a. The future value of Annuity 1 at 5% interest is $ (Round to the nearest cent.)
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