Discuss characteristics of an ordinary annuity

Discuss characteristics of an ordinary annuity
More frequent compounding What is the relationship between the number of
compounding periods per year and present values? What about future values?
Why do these relationships exist?
9. Ordinary annuity What are the four characteristics of an ordinary annuity?
Give two real-life examples of an annuity.
10. Annuities, interest rates, and time periods Discuss the relationships between
the interest rate and the present and future value of annuities. What about the
relationship between time periods and the present and future value of annuities?
Be sure to explain why these relationships exist.
11. Interest rates Suppose you have $1,000 to invest and are considering
two alternative options. Option 1 has an APR of 10 %, compounded
quarterly, while option two has an APR of 12 %, compounding annually.
What is your thought process in deciding between the two? Why is it not as
easy a question as it first appears? How could you definitively distinguish
between the two?
12. Annuities and lump sums What is the difference between investing $120 at
the end of the year and investing $10 at the end of each month of that same
13. Loan types What are the basic characteristics of the three loan types: pure
discount, interest-only, and amortized loans. How do they differ? In what
instances would you expect to see each of these?
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