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P5-21 (book/static) :3 Question Help Time value-Annuities Personal Finance Problem $2,300 per year for 10 years. Marian Kirk wishes to select the better of two
P5-21 (book/static) :3 Question Help Time value-Annuities Personal Finance Problem $2,300 per year for 10 years. Marian Kirk wishes to select the better of two 10-year annuities. Annuity 1 is an ordinary annuity of $2,500 per year for 10 years. Annuity 2 is an annuity due of a. Find the future value of both annuities at the end of year 10, assuming that Marian can earn (1) 6% annual interest and (2) 10% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 10 for both the (1) 6% and (2) 10% interest rates.. c. Find the present value of both annuities, assuming that Marian can earn (1) 6% annual interest and (2) 10% annual interest. d. Use your findings in part c to indicate which annuity has the greater present value for both the (1) 6% and (2) 10% interest rates. e. Briefly compare, contrast, and explain any differences between your findings using the 6% and 10% interest rates in parts b and d
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