A company offer annual payments of $1675 at the end of each year for the next FIVE years. a) What is the present value of this annuity discounted at 7%? b) If the same payment was given at the beginning of each year for six years. What would be the future value annuity at a discounted rate of 5.5%? c) Using data in B calculate for year two and year three.
A company offer annual payments of $1675 at the end of each year for the next FIVE years. a) What is the present value of this annuity discounted at 7%? b) If the same payment was given at the beginning of each year for six years. What would be the future value annuity at a discounted rate of 5.5%? c) Using data in B calculate for year two and year three.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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A company offer annual payments of $1675 at the end of each year for the next FIVE years.
- a) What is the present value of this
annuity discounted at 7%? - b) If the same payment was given at the beginning of each year for six years. What would be the
future value annuity at a discounted rate of 5.5%?
c) Using data in B calculate for year two and year three.
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