PROBLEM 3
Find the following values assuming a regular, or ordinary, annuity:
- The present value of $400 per year for ten years at 10 percent
- The future value of $400 per year for ten years at 10 percent
- The present value of $200 per year for five years at 5 percent
- The future value of $200 per year for five years at 5 percent
assuming:
a. A regular or ordinary annuity
b. An annuity due
ANSWER