Calculate the present value of ordinary annuity

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Reference no: EM132070223

A. Calculate the present value of an annuity of $5,000 received annually that begins today and continues for 10 years, assuming a discount rate of 9%.

B. Joan invested $5,000 in an interest-bearing account earning an 8% annual rate of interest compounded monthly. How much will the account be worth at the end of 5 years, assuming all interest is reinvested at the 8% rate?

C. Calculate the present value of an ordinary annuity of $5,000 received annually for 10 years, assuming a discount rate of 9%.

D. Calculate the future value of $10,000 invested for 10 years, assuming an annual interest rate of 9%.

E. Calculate the present value of $10,000 to be received in exactly 10 years, assuming an annual interest rate of 9%.

Reference no: EM132070223

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