of an annuity due that will pay $100 per year for each of the next three years, given the cash flows can be invested at an annual rate of 10%.?
Note:When solving for a FV of an annuity due, you MUSTput your calculator in the beginning of year mode (BGN), otherwise you'll end up with the wrong answer.
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N = 3, I/Y = 10%, PMT = $100; CPTFV = $364.10(ignore the sign).
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Calculate the PV of an ordinary annuity:
Example:Find the PV of an annuity that will pay $200 per year at the end of each of the next 13 years, given a 6% rate of return.
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N = 13, I/Y = 6, PMT = 200; CPTPV = $1,770.54
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Calculate the PV of an annuity due: