What is the present value of that annuity

Assignment Help Financial Accounting

Reference no: EM132662046

COMPREHENSIVE PROBLEM

Problem 1: An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually?

Problem 2: What is the present value of the above if the payments are received at the beginning of each year?

Problem 3: If you deposit those payments into an account earning 8%, what will the future value be in 10 years?

Problem 4: What will the future value be if you open the account with $1,000 today, and then make the $100 deposits at the end of each year?

Reference no: EM132662046

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