Question: What is the difference between an ordinary annuity and an annuity due? What are the future value and present value of a five year ordinary

What is the difference between an ordinary annuity and an annuity due? What are the future value and present value of a five year ordinary annuity of $1000 if the appropriate interest rate is 10%? What would the future and present values be of the annuity were an annuity due?

Will the future value be larger or smaller if we compound an initial amount more often than annually- for example every six months, or semiannually-holding the stated interest rate constant? Why? What is the effective annual rate for a simple rate of 12 percent, compounded semiannually? Compounded quarterly? Compounded daily?

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