Part 1 B A ttempt 2/10 for 8 pts. What is the present value of the cash flows if it's an ordinary annuity? Correct With an ordinary annuity, cash flows occur at the end of each period. The first cash flow thus occurs one period from now, rather than now. A traditional mortgage is an example of an ordinary annuity. We can use the annuity formula to find its present value: PV = (1-1) (1 + r) 260 0.005 (1 +0.005) = 13,449 Using a financial calculator: NI/Y PVPMT FV inputs 60 0.5 -2600 Compute 13,449 Using Excel (do not enter the thousands separators): =PV(rate, nper, pmt) =PV(0.005, 60, -260) =13,449 Given that this is a loan, the present value of all monthly payments is the intial loan balance, i.e., the amount borrowed. Part 2 8 Attempt 2/10 for 10 pts. balance, te, the amount borrowed, Part 2 IB Attempt 2/10 for 10 pts. What is the future value of the cash flows if it's an ordinary annuity? No decimals Submit Part 3 B Attempt 1/10 for 10 pts. What is the present value of the cash flows if it's an annuity due? No decimals Submit Part 4 LB Attempt 1/10 for 10 pts. What is the future value of the cash flows if it's an annuity due? Ho decimals Submit