Compute the amount (future value) of an ordinary annuity an annuity in arrears) of the following: a.

Question:

Compute the amount of an ordinary an in arrears) of the following:
a. 13 rental payments of $100 at 1% per period
b. 8 rental payments of $850 at 6% per period
c. 28 rental payments of $4000 at 4% per period
Required:
Calculations of present and (or single payments and for annuities, to make the exercises more realistic, we do not give specific guidance with each individual exercise.

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...