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##### Suppose you are going to receive $10,000 per year...

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Suppose you are going to receive $10,000 per year for five years. The appropriate interest rate is 11 percent. Requirement 1: (a) What is the present value of the payments if they are in the form of an ordinary annuity? Round your answer to 2 decimal places. (e.g., 32.16)) Present value of an ordinary annuity (b) What is the present value if the payments are an annuity due? Round your answer to 2 decimal places. Requirement 2: (a) Suppose you plan to invest the payments for five years, what is the future value if the payments are an ordinary annuity? Round your answer to 2 decimal places. (e.g., 32.16)) (b) Suppose you plan to invest the payments for five years, what is the future value if the payments are an annuity due? Round your answer to 2 decimal places. (e.g., 32.16))

Paper#11832 | Written in 18-Jul-2015

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