splicing Heading 1 Heading 2 1. (Four parts) FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities Compounding occurs once a year. $500 per year for 8 years at 14% $250 per year for 4 years at 7% Rework these assuming they are annuities due. $500 per year for 8 years at 14% $250 per year for 4 years at 7% 2. PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities Discounting occurs once a year. $600 per year for 12 years at 8% $300 per year for 6 years at 4% Rework parts 1 and 2 assuming they are annuities due $600 per year for 12 years at 8% $300 per year for 6 years at 49 3. PRESENT VALUE OF A PERPETUITY What is the present value of a $600 perpetuity if the interest rate is 5%? If interest rates doubled to 10%, what would its present value be