Ask Experts Questions for FREE Help !
Ask
    kimani's Avatar
    kimani Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 1, 2009, 03:16 AM
    calculating annuities due
    :confused::eek:calculating annuities
    suppose you are going t orecieve 16000 per yr for 4 yrs. The appropriate intgerest rate is 15%

    1) what is the present value of the payments if they are in the form of an ordinary annuity


    2) what is the present value of the payments if they are in the form of an annuity due


    3)suppose you plan to visit the payments for 4yrs . What is the future value if the payments are an ordinary annunity. (future value)

    4)what if the payment are an annunity due (future)
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Oct 1, 2009, 04:08 AM
    1. Use the formulas for PV and FV of annuities.
    2. If you need further guidance, read the forum's homework help rules to see what you'll need to do.
    3. While you're visiting your payments for 4 years, who'll be watching the dog?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Annuities [ 1 Answers ]

Ok so here's what I'm trying to figure out: I want to set up an annuity for retirement. I can set aside $2000 at the end of each yr for the next 20 yrs and it will earn 6% interest. What lump sum will I need to set aside today at 6% annual interest to have the same retirement fund available in...

Calculating annuities due [ 1 Answers ]

a 10 year annual annuity due with the first payment occurring at date t=7 has a current value of $50,000. If the discount rate is 13 percent per year, what is the annuity payment amount?

How to use Annuities [ 1 Answers ]

What are the ways to loose money on Annuities? Can you take a loan against these things for investment purposes?

View more questions Search