Work the problems using financial calculator

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Reference no: EM131944527

2. Find the following values, using the equations, and then work the problems using a financial calculator to check answers. Disregard rounding differences.

a) an initial $500 compounded for 1 year at 6%

b) an initial $500 compounded for 2 years at 6%

c) present value of $500 due in 1 year at a discount rate of 6%

d) present value of $500 due in 2 years at a discount rate of 6%

2. Find the future value of the following annuities. The first payment in these annuities is made at the end of year 1, so they are ordinary annuities.

a) $400 per year for 10 years at 10%

b) $200 per year for 5 years at 5%

c) $400 per year for 5 years at 0%

d) Now rework parts a,b,c assuming that payments are made at the beginning of each year; that is, they are annuities due.

Reference no: EM131944527

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