X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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 X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.

 

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