(a)Calculate the present value of an annuityof £1000 paid at the endof each year for 15 yearswith an interest rate of 2.5% per annum equivalent. (b)How much more needs to be added to the fund to make this an annuity duewith the same value (c)The annuity is to be paid continuouslyat the rate of £1000 per annum. What is the present value now?

(a)Calculate the present value of an annuityof £1000 paid at the endof each year for 15 yearswith an interest rate of 2.5% per annum equivalent. (b)How much more needs to be added to the fund to make this an annuity duewith the same value (c)The annuity is to be paid continuouslyat the rate of £1000 per annum. What is the present value now?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 7Q

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