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Future and present value of an annuity Find the future and present value of a 20-year ordinary annuity paying $100.00 per year at each of

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Future and present value of an annuity Find the future and present value of a 20-year ordinary annuity paying $100.00 per year at each of the following interest rates: a. 20% b. 10% c. 1% d. 0.1% e. What is the general principle that you see when you compare your answers here? What value are both the present value and future value getting close to as you move from part a to part d? a. The future value of a 20-year ordinary annuity paying $100.00 per year at an annual interest rate of 20% is \$ (Round to the nearest cent) The present value of a 20-year ordinary annuity paying $100.00 per year at an annual interest rate of 20% is \& (Round to the nearest cent) b. The future value of a 20 -year ordinary annuity paying $100.00 per year at an annual interest rate of 10% is 9 (Round to the nearest cent.) The present value of a 20-year ordinary annuity paying $100.00 per year at an annual interest rate of 10% is \$ (Round to the nearest cent.) c. The future value of a 20-year ordinary annuity paying $100.00 per year at an annual interest rate of 1% is \& (Round to the nearest cent.) The present value of a 20 -year ordinary annuity paying $100.00 per year at an annual interest rate of 1% is $ (Round to the nearest cent.) d. The future value of a 20-year ordinary annuity paying $100.00 per year at an annual interest rate of 0.1% is $ (Round to the nearest cent.) The present value of a 20-year ordinary annuity paying $100.00 per year at an annual interest rate of 0.1% is s (Round to the nearest cent.) e. Which of the following statements is true? (Select the best choice below.) A. When the interest rate approaches 0%, the future value of an ordinary annuity increases while the present value decreases. B. When the interest rate approaches 0%, both the future value and present value of an ordinary annuity increases. C. When the interest rate approaches 0%, both the future value and present value of an ordinary annuity decreases. D. When the interest rate approaches 0%, both the future value and present value of an ordinary annuity approach the amount that equals the annuity payment times the number of payments in the annuity

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