Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. time value-annuities personal finance problem mari

Time value-Annuities Personal Finance Problem Marian Kirk wishes select the better of two 5-year annuities....

90.2K

Verified Solution

Question

Finance

image

Time value-Annuities Personal Finance Problem Marian Kirk wishes select the better of two 5-year annuities. Annuity 1 is an ordinary annuity of S1,550 per year for 5 years. Annuity 2 is an annuity due of 51.420 per year for 5 years a. Find the future value of both annuities at the end of year 5, assuming that Marian can earn (1) 7% annual interest and (2) 14% annual interest. b. Use your findings in part a to indicate which annuity has the greater future value at the end of year 5 for both the (1) 7% and (2) 14% interest rates.. c. Find the present value of both annuities, assuming that Marian can earn (1) 7% annual interest and (2) 14% annual interest. d. Use your findings in partc to indicate which annuity has the greater present value for both the (1) 7% and (2) 14% interest rates. e. Briefly compare, contrast, and explain any differences between your findings using the 7% and 14% interest rates in parts b and d. 4. a. The future value of Annuity 1 at 7% interest is $(Round to the nearest cent.)

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!
Become a Member

Other questions asked by students