1. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent.

PV of annuity due: $ FV of annuity due: $

2. What will the FV and the PV for parts a and c be if the interest rate is 8% with semiannual compounding rather than 8% with annual compounding? Round your answers to the nearest cent.

FV with semiannual compounding: $ PV with semiannual compounding: $

Previous questions & answers

Find the PV of $1,000 due in 4 years if the discount rate is 8%. Round your answer to the nearest cent.

$735.02

d. A security has a cost of $1,000 and will return $3,000 after 4 years. What rate of return does the security provide? Round your answer to two decimal places.

=31.61%

e. Suppose California's population is 34.8 million people, and its population is expected to grow by 2% annually. How long will it take for the population to double? Round your answer to the nearest whole number.

35 years

f. Find the PV of an ordinary annuity that pays $1,000 each of the next 4 years if the interest rate is 10%. Then find the FV of that same annuity. Round your answers to the nearest cent.

PV of ordinary annuity: $ 3169.87 FV of ordinary annuity: $ 4641