Difference between an ordinary annuity and an annuity due

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Reference no: EM131339041

1. What is the relationship between present value and future value?

2. What is the difference between an ordinary annuity and an annuity due? Give examples of each.

3. If the required rate of return increases, what is the impact on the following?

a. A present value of an annuity

b. A future value of an annuity

2. Explain how future value of an annuity interest factors can be used to solve a sinking fund problem.

Reference no: EM131339041

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