Future value: annuity versus annuity due

1. What's the future value of a 9%, 5-year ordinary annuity that pays $500 each year? Round your answer to the nearest cent.

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2. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

Present and future values for different periods

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Round your answers to the nearest cent.

1. An initial $800 compounded for 1 year at 8%.

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2. An initial $800 compounded for 2 years at 8%.

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3. The present value of $800 due in 1 year at a discount rate of 8%.

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4. The present value of $800 due in 2 years at a discount rate of 8%.

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ime for a lump sum to double

If you deposit money today in an account that pays 8.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.

years

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