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Please explain with formula! Thank you! f. Find the PV of an ordinary annuity that pays $1,000 at the end of each of the next
Please explain with formula! Thank you!
f. Find the PV of an ordinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. Then find the FV of that same annuity. PV = $3,352.16 FV = $6,742.38 g. How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity? PV annuity due = FV annuity due = h. What would the FV and the PV for parts a and C be if the interest rate were 10% with semiannual compounding rather than 10% with annual compounding? Part a. FV with semiannual compounding: Part c. PV with semiannual compoundingStep by Step Solution
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