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What is the present value of the annuity?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Suppose you purchased an annuity that pays $200 at the beginning of each year for 3 years. The interest rate is 4.4%. What is the present value of the annuity?

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