Question: Suppose you are going to receive $ 2 5 , 0 0 0 per year for 1 0 year. The appropriate interest rate is 5

Suppose you are going to receive $25,000 per year for 10 year. The appropriate interest rate is
5%.
(a) What is the present value of these payments if they are an ordinary annuity?
(b) What is the present value of these payments if they are an annuity due?
(c) If you invest the payments over these 10 years, what will be their future value if they are an
ordinary annuity?
Suppose you are going to receive $25,000 per year for 10

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