Arun wants to have 500 at the END of every year for 20 years. The ...

[vinney12]

Arun wants to have 500 at the END of every year for 20 years. The bank pays 11 interest, compounded annually. Arun calculates that the present value of the ordinary annuity is 3,981.67. What would be the present value if payments were to be received at the BEGINNING of every period rather than the END?
 A) 5,183.91
  B) 5,525.98
  C) 4,043.26
  D) 4,419.65

Question 2

Your bank pays 9 interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of 800 at the END of each year, for 10 years.
 A) 5,134.13
  B) 6,099.86
  C) 5,596.20
  D) 6,454.28

[aprice35067]

Answer to Question 1

D

Answer to Question 2

A

[vinney12]

Thank you

[aprice35067]

Happy to help you