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What is the pv of an ordinary annuity

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Reference no: EM131554532

1. Calculate FV. Jack has $6,000 invested in a bank that pays 3% annually. How long will it take for his funds to double?

2. FV of Annuity. Suppose a friend wants to quit working in order to return to school for an MBA degree 3 years from now, and plans to save $7,800 per year, beginning immediately. Your friend plans to make 3 deposits into an account that pays 3% interest per year. Under these assumptions, how much will your friend have 3 years from today?

3. PV of Annuity. What is the PV of an ordinary annuity with 5 payments of $4,500 at the end of each year if the appropriate interest rate is 5%?

Reference no: EM131554532

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