i. Find the present value of the following ordinary annuities.
$400 per year for 10 years at 10%
$200 per year for 5 years at 5%
$400 per year for 5 years at 0%
Now rework parts a, b, and c assuming that payments are made at the beginning of the year.
ii. Find the amount to which $500 will grow under each of the following conditions.
12% compounded annually for 5 years
12% compounded semiannually for 5 years
12% compounded quarterly for 5 years
12% compounded monthly for 5 years
iii. Find the present value of $500 due in the future under each of the following conditions.
12% nominal rate, semiannual compounding, discounted back 5 years
12% nominal rate, quarterly compounding, discounted back 5 years
12% nominal rate, monthly compounding, discounted back 1 years