Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8 percent. a.What is the present value of the payments if they are in the form of an ordinary annuity? b.What is the present value if the payments are an annuity due? c.Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity? d.Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an annuity due?

Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8 percent. a.What is the present value of the payments if they are in the form of an ordinary annuity? b.What is the present value if the payments are an annuity due? c.Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity? d.Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an annuity due?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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