Chapter 9: Extended Learning P2 and P3
P2. Assume you are planning to invest $5,000 each year for 6 years and will earn 10% per year. Determine the future value of this annuity due problem if your first $5,000 is invested now.
P3. What is the present value of a five-year lease arrangement with an interest rate of 9% that requires annual payments of $10,000 per year with the first payment being due now?