Question
Future Value of an annuity. Using the values below, answer the questions that follow: Amount of Annuity = $7500.00 Interest Rate= 8% Deposit Period= 11yrs.
Future Value of an annuity. Using the values below, answer the questions that follow:
Amount of Annuity = $7500.00
Interest Rate= 8%
Deposit Period= 11yrs.
A. Calculate the future value assuming that (1) its an ordinary annuity (2) an annuity due *round answer to the nearest cent
B. Compare your findings in part a(1) and a(2). All else being identical, which type of annuity-ordinary or annuity due-is preferable as an investment?
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The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
