Problem
Suppose you are going to receive $14,500 per year for six years. The appropriate interest rate is 9.6 percent.
• What is the present value of the payments if they are in the form of an ordinary annuity?
• What is the present value if the payments are an annuity due?
• Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity?
• Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due?