Future and present value of an annuity Use equations 5.3 and 5.4 to find the future and
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Future and present value of an annuity Use equations 5.3 and 5.4 to find the future and present value of a five-year ordinary annuity paying $100 per year at each of the following interest rates:
a. 20%
b. 10%
c. 1%
d. 0.1%
e. What is the general principle that you see when you compare your answers here?
What value are both the present value and future value getting close to as you move from part a to part d?
Equations
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Related Book For
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
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