1. Present value of an annuity (Use Excel Financial Functions only.)
Find the present values of these ordinary annuities. Discounting occurs once a year.
$500 per year for 10 years at 10%
$500 per year for 5 years at 5%
$500 per year for 5 years at 0%
Rework parts a, b, and c assuming they are annuities due.
2. Future value for various compounding periods (Use Excel Financial Functions only.)
Find the amount to which $500 will grow under each of these conditions:
5% compounded annually for 5 years
5% compounded semiannually for 5 years [Hint: I/YR = 6; N = 10]
5% compounded quarterly for 5 years
5% compounded monthly for 5 years