dinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 15PROB
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Ordinary annuity that pays $1,000 at the end of each of the next 5 years if the interest rate is 15%. 


Inputs: PMT = $1,000
N = 5
I/YR = 15%

PV = $3,352.16

FV= $6,742.38


How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity?



PV annuity due = ?

Exactly the same adjustment is made to find the FV of the annuity due.

FV annuity due = ?

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