Suppose you are going to receive $$15,800$ per year for five years. The appropriate

interest rate is $7\mathrm{.}9$ percent.

a$.$ What is the present value of the payments if they are in the form of an ordinary

annuity? What is the present value if the payments are an annuity due?

b$.$ Suppose you plan to invest the payments for five years. What is the future value if

the payments are an ordinary annuity? What if the payments are an annuity due?

Annual payment

# of years

Interest rate

$

$15,800$

$5$

$7\mathrm{.}9\%$

Complete the following analysis. Do not hard code values in your

calculations. All answers should be positive.

a$.$ PV of ordinary annuity

PV of annuity due

b$.$ FV of ordinary annuity

$FV$ of annuity due