Annuities: Future and Present Values
Not what you're looking for?
(a) What is the future value of a 3-year ordinary annuity (recall that ordinary annuities have end of year cash flows) of $200 if the appropriate interest rate is 12%?
(b) What is the present value of the annuity?
(c) What would the future and present values be if the annuity were an annuity due (beginning of year cash flows)?
Purchase this Solution
Solution Summary
The solution comprises of formulas and detailed step-by-step calculations for the given problem about future and present values.
Solution Preview
Dear student, please refer to the attachment for the solution.
Thanks for using BrainMass.
(a) What is the future value of a 3-year ordinary annuity (recall that ordinary annuities have end of year cash flows) of $200 if the appropriate interest rate is 12%?
Solution: ...
Education
- MSc, Osmania University
- MSc, Indian Institute of Technology - Roorkee (I.I.T.-ROORKEE)
- BSc, Banaras Hindu University
Recent Feedback
- "Very fast turnaround. Excellent communication! Much appreciated!"
- "excellent"
- "excellent"
- "excellent work"
- "Fantastic..great solution and very well explained!!!!"
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Introduction to Finance
This quiz test introductory finance topics.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)