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Determine the future value of this annuity due

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Reference no: EM132976633

Question - Your friend Anne is planning to invest $400 each year for four years and will earn a rate of 6 percent per year. 

a) Determine the future value of this annuity due if her first $400 is invested now.  It would help if you can show the work.

b) What is the difference between an annuity due and an ordinary annuity? If you can help explain.

Reference no: EM132976633

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