1. Find the future value of an ordinary annuity of $800 paid at the end of every...

Question:

1. Find the future value of an ordinary annuity of $800 paid at the end of every 6-month period for 10 years, if it earns interest at 12%, compounded semiannually?

2. How much would have to be invested at the end of each year at 6%, compounded annually, to pay off a debt of $80,000 in 10 years?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...