Question
f. Find the PV of an ordinary annuity that pays $1,000 each of the next 4 years if the interest rate is 15%. Then find
f. Find the PV of an ordinary annuity that pays $1,000 each of the next 4 years if the interest rate is 15%. Then find the FV of that same annuity. Round your answers to the nearest cent.
PV of ordinary annuity: $ fill in the blank 25 FV of ordinary annuity: $ fill in the blank 26
g. 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: $ fill in the blank 27 FV of annuity due: $ fill in the blank 28
h. What will the FV and the PV for parts a and c be if the interest rate is 12% with semiannual compounding rather than 12% with annual compounding? Round your answers to the nearest cent.
FV with semiannual compounding: $ fill in the blank 29 PV with semiannual compounding: $ fill in the blank 30
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