Study Problems

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Annuities

  1. 6–1. (Calculating the future value of an ordinary annuity) What is the future value of each of the following streams of payments?

    1. $500 a year for 10 years compounded annually at 5 percent

    2. $100 a year for 5 years compounded annually at 10 percent

    3. $35 a year for 7 years compounded annually at 7 percent

    4. $25 a year for 3 years compounded annually at 2 percent

  2. 6–2. (Calculating the present value of an ordinary annuity) (Related ...

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