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Author Question: Arun wants to have 500 at the END of every year for 20 years. The bank pays 11 interest, compounded ... (Read 111 times)

vinney12

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on: Jun 24, 2018
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


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aprice35067

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Reply #1 on: Jun 24, 2018
Answer to Question 1

D

Answer to Question 2

A


vinney12

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Reply #2 on: Jun 24, 2018
Thank you :)


aprice35067

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Reply #3 on: Jun 24, 2018
Happy to help you


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