Question
F. 1) What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%? 2) What isits present value?
F. 1) What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%? 2) What isits present value? 3) What would the future and present values be if it was an annuity due?
G. A 5-year $100 ordinary annuity has an annual interest rate of 10%. 1) What isits present value? 2) What would the present value be if it was a 10-year annuity? 3) What would the present value be if it was a 25-year annuity? 4) What would the present value be if this was a perpetuity?
H. A 20-year-old student wants to save $3 a day for her retirement. Every day she places $3 in a drawer. At the end of each year, she invests the accumulated savings ($1,095) in a brokerage account with an expected annual return of 12%. 1) If she keeps saving in this manner, how much will she have accumulated at age 65? 2) If a 40-year-old investor began saving in this manner, how much would he have at age 65? 3) How much would the 40-year-old investor have to save each year to accumulate the same amount at 65 asthe 20-year-old investor
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