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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Vishnu

Transcribed Image Text:Brief Exercise C-12 (Algo) Calculate the present value of an annuity (LOC-5)
Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The scholarship will pay $14,000 each year
for the next four years to reimburse normal school-related expenditures. Each $14,000 payment will be made at the end of the year,
contingent on Tatsuo maintaining good grades in his classes for that year. Assuming an annual interest rate of 9.0%, determine the
value today of receiving this scholarship if Tatsuo maintains good grades. (EV of $1. PV of $1. EVA of $1. and PVA of $1) (Use tables,
Excel, or a financial calculator. Round your answer to 2 decimal places.)
Present value of annuity
< 1
Next >>
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