Explain what is annuity & the diff between ordinary annuity and annuity due. What...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Explain what is annuity & the diff between ordinary annuity and annuity
due. What are the relationship of the present value and future value calculation of these
two types of annuities?
Imagine you buy a car using a bank loan that requires an annual payment of $500 for 10years at the end of each year. If the annual interest rate is 3%, what are the present value of this car? What is the Excel function used for this calculation?
What would the present value be if the loan requires a semi-annual payment of $100 at the
beginning of each period? What is the Excel function for this annuity due?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
