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Financial Planning & Control (PMBA 5373) Homework #7, 10 points due 11:59 p.m., Thursday 9/23/21...

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Financial Planning & Control (PMBA 5373) Homework #7, 10 points due 11:59 p.m., Thursday 9/23/21 1. Consider the following five annuities: A B. C. D. E. annual S amount 12,000 55,000 700 140,000 22,500 annual rate 7 12 20 5 10 number of years 3 15 9 7 5 For each of the five annuities (A - E), calculate the present value (PV) twice - once as a regular (deferred) annuity and once as an annuity due. 2. Refer to your answers to question #1. All else being equal, which type of annuity (deferred or due) would be preferable. Why? 3. Now, consider the following five annuities: A B. C. D. E. annual S amount 2,500 500 30,000 11,500 6,000 annual rate 8 12 20 9 14 number of years 10 6 5 8 30 For each of the five annuities (A-E), calculate the future value (FV) twice-once as a regular (deferred) annuity and once as an annuity due. 4. Refer to your answers to question 3. All else being equal, which type of annuity (deferred or due) would be preferable. Why

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