13 If the interest rate is 4%, the factor for the future value of an annuity due of 1 for n = 5,i = 4% is equal tothe factor for the future value of an ordinary annuity of 1 for n=5,i= 4%O divided by 1.04.O multiplied by 1.04.O minus 1.04.O plus 1.04.

We know that, Future value of an annuity due = P×1+in-1×(1+i)i Future value of an annuity ordinary =…

Answered: If the interest rate is 4%, the factor…

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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If the interest rate is 4%, the factor for the future value of an annuity due of 1 for n = 5,i-4% is equal to the factor for the future value of an ordinary annuity of 1 for n 5,i- 4% O divided by 1.04. O multiplied by 1.04. minus 1.04. O plus 1.04.