Question
Answer the following questions: 1. What is the difference between an annuity and a perpetuity? 2. What is the difference between an ordinary annuity and
Answer the following questions:
1. What is the difference between an annuity and a perpetuity? 2. What is the difference between an ordinary annuity and an annuity due? Find the required value for each problem. Show the formula used and the counts for each problem. 1. Jos Luis has the opportunity to make an investment that requires a payment of $ 750 per year for the next twelve years. If the investment is made at an interest rate of 8%, what is the value of that investment today? 2. What is the present value of an investment that guarantees a payment of $ 22,500 per year for the next five years if the annual compound interest rate is 15%? 3. Roberto Homar is planning to invest $ 25,000 annually for the next seven years, an investment that will pay him an annual compound interest of 11.4%. How much money will Roberto have at the end of the seven years?
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