Find the present value of the ordinary annuities

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Reference no: EM131890885

i. Find the present value of the following ordinary annuities.

$400 per year for 10 years at 10%

$200 per year for 5 years at 5%

$400 per year for 5 years at 0%

Now rework parts a, b, and c assuming that payments are made at the beginning of the year.

ii. Find the amount to which $500 will grow under each of the following conditions.

12% compounded annually for 5 years

12% compounded semiannually for 5 years

12% compounded quarterly for 5 years

12% compounded monthly for 5 years

iii. Find the present value of $500 due in the future under each of the following conditions.

12% nominal rate, semiannual compounding, discounted back 5 years

12% nominal rate, quarterly compounding, discounted back 5 years

12% nominal rate, monthly compounding, discounted back 1 years

Reference no: EM131890885

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