What is the future value of a 5%, 5-year ordinary annuity that pays $350 each year? Round your answer to the nearest cent. $ If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $

The  future value of a 5%, 5-year ordinary annuity that pays $350 each year is $1,933.97

If this were an annuity due,  its future value is $2,030.67

Explanation:

Rate: 5%

Annual payment: ($350)

Tenor: 5 years

We can use excel to calculate the future value =FV(rate,tenor,payment,type)

=(5%,5,-350,,0)= $1,933.97

type "0" is payment at end of period (at year end).

Annuity due is an annuity whose payment is due immediately at the beginning of each period, so type for this is "1)

= (5%,5,-350,,1) = $2,030.67

Please see excel attached for more details

answer; normative economics;