What is the future value of a 20-year ordinary annuity of


a) What is the future value of a 20-year ordinary annuity of $50 if the interest rate is 8%?

b) What is the present value of the annuity?

c) What are the future and present values if the annuity were an annuity due?

d) If I plan to buy a $200,000 house with a 30-year mortgage at 9%, what is my monthly payment?

e) How much principal would I pay in the first month of the mortgage?

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Financial Management: What is the future value of a 20-year ordinary annuity of
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