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3. Present value of an annuity Find the present values of these ordinary annuities. Discounting occurs once a year. a. $400 per year for 10
3. Present value of an annuity Find the present values of these ordinary annuities. Discounting occurs once a year. a. $400 per year for 10 years at 10% b. $200 per year for 5 years at 5% C. $400 per year for 5 years at 0% d. Rework parts a, b, and c assuming they are annuities due. 4. Future value for various compounding periods Find the amount to which $500 will grow under each of these conditions: a. 12% compounded annually for 5 years b. 12% compounded semiannually for 5 years C. 12% compounded quarterly for 5 years d. 12% compounded monthly for 5 years e. 12% compounded daily for 5 years (365/year)
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