(3-4.) The following terms of payment for an annuity are as follows:Periodic payment = 20,000Payment interval = 1 monthInterest rate= 18% compounded monthlyTerms= 15 years 4. Find the difference between the sum of an annuity due and an ordinary annuity on these payments.a. 271,687.35b. 362,741.30c. 250,459.31d. 324,627.36

Ordinary due starts at the beginning of the period while ordinary annuity starts at the end of the…

Answered: 1. 271,687.3

Business

Finance

1. 271,687.3

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 20E

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Question

(3-4.) The following terms of payment for an annuity are as follows:
Periodic payment = 20,000
Payment interval = 1 month
Interest rate
= 18% compounded monthly
Terms
= 15 years

4. Find the difference between the sum of an annuity due and an ordinary annuity on these payments.
a. 271,687.35
b. 362,741.30
c. 250,459.31
d. 324,627.36

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