Question
Present value of an annuityConsider the following case.Amount of annuity Interest rate Period (years) $15,000 5% 7 a.Calculate the present value of the annuity assuming
Present value of an annuityConsider the following case.Amount of annuity Interest rate Period (years) $15,000 5% 7 a.Calculate the present value of the annuity assuming that it is (1) An ordinary annuity. (2) An annuity due. b.Compare your findings in parts a(1) and a(2). All else being identical, which type of annuityordinary or annuity dueis preferable? Explain why.
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
