Which has the higher present value-the ordinary annuity

Assignment Help Financial Management

Reference no: EM131513798

Suppose you are going to receive $15,000 per year for five years. The appropriate interest rate is 10 percent.

a. What is the present value of the payments if they are in the form of an ordinary annuity?

What is the present value of the payments if the payments are an annuity due?

b. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity?

What is the future value if the payments are an annuity due?

c. Which has the higher present value, the ordinary annuity or annuity due?

Which has the higher future value?

Reference no: EM131513798

Questions Cloud

Acquired in finance major that is shaping your ideas today : Describe the most important learning you have acquired in finance major that is shaping your ideas today

A member of a vulnerable group : Construct a case study that describes some of the issues and problems faced by a member of a vulnerable group.

Would you choose a peerto-peer or server based network : Networking Gadgets, Inc., currently employs 8 people but plans to hire 10 more in the next four months. Users will work on multiple projects, and only users.

Describe the research design chosen : Describe the research design chosen and include the variables and concepts.Describe why you chose the proposed design over the other options.

Which has the higher present value-the ordinary annuity : Which has the higher present value, the ordinary annuity or annuity due? Which has the higher future value?

Define peer-to-peer network or a server-based network : CNT Books hired you as a productivity consultant. Currently, it employs six people who will be moving into new office space.

What will be the total value of the inflows after five years : If the reinvestment assumption of the internal rate of return method is used, what will be the total value of the inflows after five years?

Describe the ethical considerations : Describe what qualitative design would most effectively address your research question.Describe the ethical considerations involved in obtaining a sample.

What type of network is called for-lan wan and man : CNT Books has expanded considerably since you got the network up and running three years ago. It now occupies an entire floor in the building, and its LAN.

User Account

All Pages