Find the value of the ordinary annuity at the end of the indicated time period. The payment R, frequency of deposits m (which is the same as frequency compounding) annual interest rate r, and time t amount $800 monthly interest rate 5.5% 6years what is the future value of the given annu
Find the value of the ordinary annuity at the end of the indicated time period. The payment R, frequency of deposits m (which is the same as frequency compounding) annual interest rate r, and time t amount $800 monthly interest rate 5.5% 6years what is the future value of the given annu
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Find the value of the ordinary
amount $800
monthly interest rate 5.5%
6years
what is the
Expert Solution
Step 1
The ordinary annuity means a series of equal payments made at regular intervals at the end of the period. In an ordinary, equal payments are made over a fixed period. The annuity due is different from the ordinary annuity. The ordinary annuity is the payment made at the end of the period however the annuity is due, makes the payment at the beginning of the year.
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