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Homework Chapter 4 and 5 8 Suppose you are going to receive $14,500 per year for five years. The appropriate interest rate is 8 percent
Homework Chapter 4 and 5 8 Suppose you are going to receive $14,500 per year for five years. The appropriate interest rate is 8 percent What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round Intermec and round your answer to 2 decimal places, e-9.32.16.) Hint Present value What is the present value of the payments if the payments are an annuity due? (Do not round Intermediate calcula your answer to 2 decimal places, c.9. 32.16.) Present value $ b. Suppose you plan to invest the payments for five years. What is the future value of the payments are an ordinary round Intermediate calculations and round your answer to 2 decimal places, e-9.32.16) Future value $ What is the future value the payments are an annuity due? (Do not round intermediate calculations and round you decimal places, 9. 32.16.) Future value $ c. Which has the higher present value, the ordinary annuity or annuity due? rence Which has the higher future value GRO
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