1) Find the present value of the following ordinary annuities ( Notes If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable Then, without clearing the TVM register, you can override the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer This procedure can be used in many situations, to see how changes in input variables affect the output variable Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due ) Do not round intermediate calculations Round your answers to the nearest cent $800 per year for 10 years at 14 $400 per year for 5 years at 7 $$800 per year for 5 years at 0 Now rework parts a, b, and c assuming that payments are made at the beginning of each year that is, they are annuities due Present value of $800 per year for 10 years at 14 $ Present value of $400 per year for 5 years at 7 $ Present value of $800 per year for 5 years at 0 $ 2) Find the amount to which $650 will grow under each of the following conditions Do not round intermediate calculations Round your answers to the nearest cent 12 compounded annually for 5 years 12 compounded semiannually for 5 years 12 compounded quarterly for 5 years 12 compounded monthly for 5 years 3) Find the future values of the following ordinary annuities FV of $800 each 6 months for 6 years at a nominal rate of 16 , compounded semiannually Do not round intermediate calculations Round your answer to the nearest cent FV of $400 each 3 months for 6 years at a nominal rate of 16 , compounded quarterly Do not round intermediate calculations Round your answer to the nearest cent The annuities described in parts a and b have the same amount of money paid into them during the 6 year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 6 years Why does this occur

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1) Find the present value of the following ordinary annuities . ( Notes: If you are using a financial calculator, you can enter the known

1) Find the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent.

$800 per year for 10 years at 14%.
$400 per year for 5 years at 7%.
$$800 per year for 5 years at 0%.

Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

Present value of $800 per year for 10 years at 14%: $
Present value of $400 per year for 5 years at 7%: $
Present value of $800 per year for 5 years at 0%: $

2) Find the amount to which $650 will grow under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent.

12% compounded annually for 5 years.
12% compounded semiannually for 5 years.
12% compounded quarterly for 5 years.
12% compounded monthly for 5 years.

3) Find the future values of the following ordinary annuities.

FV of $800 each 6 months for 6 years at a nominal rate of 16%, compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent.
FV of $400 each 3 months for 6 years at a nominal rate of 16%, compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent.
The annuities described in parts a and b have the same amount of money paid into them during the 6-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns more than the one in part a over the 6 years. Why does this occur?