# Question: For the following questions assume an annual annuity of 1 000

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 year’s worth of interest on this annuity, what would be the future value?

c. What is the future value of a 10-year annuity due?

d. What is the relationship between your answers in parts (b) and (c)? Explain.

a. What is the future value of a ten-year ordinary annuity?

b. If you earned an additional year’s worth of interest on this annuity, what would be the future value?

c. What is the future value of a 10-year annuity due?

d. What is the relationship between your answers in parts (b) and (c)? Explain.

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