Find the future values of these ordinary annuities. Compounding occurs once a year. a. $400 per year

Question:

Find the future values of these ordinary annuities. Compounding occurs once a year.

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. Rework Parts a, b, and c assuming they are annuities due.

Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...