9-7 Find the future value of the following ordinary annuities: a. $400 per year for 10 years at 10 percent b. $200 per year for five years at 5 percent

6. Find the present value of a perpetuity payments of P 600 every 3 months with 6% compounded quarterly.

The future value of an ordinary annuity of $2,000 each year for 10 years, deposited at 12%, is: $35,098                                     $39,310 $20,000                                     $11,300

Find the future value of $2500 deposited at the end of every 6 months for 10 years if interest is 6% compounded quarterly? a $67 329.89 b $62 368.65 c $57 809.17 d $50 000.00

Ques 12 and 13

UNIT 7-18

Find the future values of the following ordinary annuities: a. FV of $600 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $300 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? 819000.0 The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously-earned interest. V

39. The future value of a Php 2,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is A. Php 28,974 C. Php 14,494 B. Php 31,292 D. Php 13,420

6. The present value of $500 to be received each year for seven years with the first payment to occur in exactly five years at a discount rate of 8 percent is? 7. The present value of $500 to be received at the beginning of each year for seven years at a discount rate of 8 percent is ? 9.The future value of $500 to be received at the beginning of each year for seven years at a discount rate of 8 percent is 13. Trade credit terms of 2/10, net 90 are available. Calculate the cost of trade credit when payment is made on the net due date using the APR. Use a 360 day year. 14. Trade credit terms of 2/10, net 90 are available. Calculate the cost of trade credit when payment is made on the net due date using the EAR (also known as APY). Use a 360 day year.