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Homework: Ch 5 Pre HW (part 1 of 2) Save Score: 0 of 1 pt 4 of 4 (3 complete) HW Score: 80%, 4 of
Homework: Ch 5 Pre HW (part 1 of 2) Save Score: 0 of 1 pt 4 of 4 (3 complete) HW Score: 80%, 4 of 5 p inant p5-21 (similar to) Question Help Time value-Annuitles Personal Finance Problem Marian Kirk wishes to select the better of two 9-year annuities. Annuity 1 is an ordinary annuity of $2,400 per year for 9 years. Annuity 2 is an annuity due of $2,260 per year for 9 years. a. Find the future value of both annuities at the end of year 9. assuming that Marian can earn (1) 7% annual interest and (2) 14% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 9 for both the (1) 7% and (2) 14% Interest rates.. c. Find the present value of both annuities, assuming that Marian can eam (1) 7% annual interest and (2) 14% annual interest. d. Use your findings in parte to indicate which annuity has the greater present value for both the (1) 7% and (2) 14% interest rates e. Briefly compare, contrast, and explain any differences between your findings using the 7% and 14% interest rates in parts b and d The future value of Annuity 1 at 7% interest is (Round to the nearest cent.) est Enter your answer in the answer box and then click Check Answer. 12 parts remaining Clear All Check
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