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Suppose you are going to receive $19,000 per year for 6 years. the appropriate interest rate...

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Finance

Suppose you are going to receive $19,000 per year for 6 years. theappropriate interest rate is 11 percent.

a. what is the present value of the payments if they are inthe form of an ordinary annuity?
b. what is the oresent value if the payments are an annuitydue?
c. suppose you plan to invest the payments for 6 years, whatis the future value if the payments are an ordinary annuity?
d. suppose you plan to invest the payments for 6 years, whatis the future value if the oayments are an annuity due?

Answer & Explanation Solved by verified expert
4.5 Ratings (808 Votes)
a Present value of payments in the form of ordinaryannuitywhereP Present value of an annuityPMT Amount of each annuity paymentr Interest rate in decimaln Number of    See Answer
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Transcribed Image Text

Suppose you are going to receive $19,000 per year for 6 years. theappropriate interest rate is 11 percent.a. what is the present value of the payments if they are inthe form of an ordinary annuity?b. what is the oresent value if the payments are an annuitydue?c. suppose you plan to invest the payments for 6 years, whatis the future value if the payments are an ordinary annuity?d. suppose you plan to invest the payments for 6 years, whatis the future value if the oayments are an annuity due?

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