For the following questions, assume an annual annuity of $1,000 and a required return of 12 a What is the future value of a ten year ordinary annuity b If you earned an additional years worth of interest on this annuity, what would be the future value c What is the future value of a 10 year annuity...

For the following questions, assume an annual annuity of $1,000 and a required return of 12%. a.

Question:

For the following questions, assume an annual of $1,000 and a required return of 12%.
a. What is the of a ten-year ordinary If you earned an additional year’s worth of interest on this what would be the What is the of a 10-year due?
d. What is the relationship between your answers in parts (b) and (c)? Explain.
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 50% (18 reviews)

a FVA 10 1000 112 10 1 17549 012 b 17549 112 19655 c FVA 10 ...View the full answer

Answered By

Isha Khanna

I am B.Sc. in Applied Life Sciences.I have been Delhi University topper in three years of my graduation. I am Bachelors in Education from Delhi University,with Ist division ,a highly demanded professional course to be a teacher.I have done Masters in Chemistry with Ist division.I am CTET Qualified as well. I have authored a book having Title “Wonder Chemistry” and Sub Title “How can you relate Modern Chemistry in your day to day life experiences”. My book is listed on Notion Press, Amazon.in and flipkart. The link is as follows:- • https://notionpress.com/read/wonder-chemistry • https://www.amazon.in/dp/1647838215/ref=cm-sw-r-wa-apa-i-KV9jEbNVHVWDZ • Have worked as a guest teacher in one of the reputed Pratibha Vikas schools. • Have been teaching Science to students from home for 4 years. • Have worked with students on individual and small group basis to reinforce learning concepts, help complete assignments and improve performance while maintaining safe and positive learning environment. • I am a strong listener and believes in Interactive teaching and learning. . Lastly,I am a spiritual and jolly person at heart.

0.00 0 Reviews 10+ Question Solved

Related Book For book-img-for-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

See More Books

Question Posted: Mar 26, 2015 06:19 AM

See More Questions

For the following questions, assume an annual annuity of $1,000 and a required return of 12%. a.

Question:

Step by Step Answer:

a FVA 10 1000 112 10 1 17549 012 b 17549 112 19655 c FVA 10 ...View the full answer

Introduction to Corporate Finance What Companies Do

Students also viewed these Accounting questions