annuity pays $5000 each year for 5 years starting today. It pays $6000 per year for year 7 to year 10. The interest rate are 4% for the first 5 years and 8% for years 6 to 10. What is the present value of these c

annuity pays $5000 each year for 5 years starting today. It pays $6000 per year for year 7 to year 10. The interest rate are 4% for the first 5 years and 8% for years 6 to 10. What is the present value of these c

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An annuity pays $5000 each year for 5 years starting today. It pays $6000 per year for year 7 to year 10. The interest rate are 4% for the first 5 years and 8% for years 6 to 10. What is the present value of these cash flows?

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