Question: Problem 6-53 Calculating Annuities Due [LO1] Suppose you are going to receive $12,700 per year for six years. The appropriate interest rate is 7.6 percent.

Problem 6-53 Calculating Annuities Due [LO1] Suppose you are going to

Problem 6-53 Calculating Annuities Due [LO1] Suppose you are going to receive $12,700 per year for six years. The appropriate interest rate is 7.6 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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