Consider an annual annuity composed by 10 payments equal to 125 € in the first 3 years and 150 € in the following period. Compute the value of the annuity after 5 years at the annual instantaneous rate 3%. a) 1297.89 € b) 1305.07 € c) 1302.8 € d) 1401.07 €

Consider an annual annuity composed by 10 payments equal to 125 € in the first 3 years and 150 € in the following period. Compute the value of the annuity after 5 years at the annual instantaneous rate 3%. a) 1297.89 € b) 1305.07 € c) 1302.8 € d) 1401.07 €

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

Answer the following question and show steps?

5) Consider an annual annuity composed by 10 payments equal to 125 € in the
first 3 years and 150 € in the following period. Compute the value of the
annuity after 5 years at the annual instantaneous rate 3%.
a) 1297.89 €
b) 1305.07 €
c) 1302.8 €
d) 1401.07 €

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