13. Further analysis of problem 12: a. Find the present value of 2 percent X $ 1,000...

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13. Further analysis of problem 12:

a. Find the present value of 2 percent X $ 1,000 (or $20) for 20 years at 10 percent.

The $20 is assumed to be an annual payment.

b. Add this value to $ 1,000.

c. Explain why the answers to problem 13b and problem 12 are basically the same. (There is a slight difference due to rounding in the tables.)

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Foundations Of Financial Management

ISBN: 9780073382388

13th Edition

Authors: Stanley B. Block, Geoffrey A. Hirt, Bartley R. Danielsen

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Question Posted: Oct 22, 2024 06:00 AM

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13. Further analysis of problem 12: a. Find the present value of 2 percent X $ 1,000...

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Foundations Of Financial Management

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