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1. 2. Computing Future and Present Values When answering the following questions, round your answer to the nearest whole number Do not use a negative
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Computing Future and Present Values When answering the following questions, round your answer to the nearest whole number Do not use a negative sign with your answer. 0 0 1. What is the present value of $25,000 to be received after 5 years, discounted at 5967 $ 2. What is the future value of $50,000 at the end of 4 years, compounded at 5%? $ 3. What is the present value of equal payments of $90,000 due at the end of each of 8 periods, discounted at 5967 $ 4. What is the future value of equal payments of $125,000 made at the beginning of each of 5 periods, compounded at 7%? $ 5. What is the present value of equal payments of $100,000 made at the end of 8 periods, compounded at 6967 The payments are deferred for 3 years. $ 0 0 A 0 Computing the Annual Debt Payments On September 1, 2020, Sault Inc. incurs a $240,000 debt. Arrangements are made to pay this debt in three equal annual installments starting immediately at compound interest of 8%. a. Is this an ordinary annuity or an annuity due? In answering the following questions, round your answer to the nearest whole number. Do not use negative signs with your answers. b. Compute the amount of the equal annual payments. $ C. Compute the annual payment assuming the payments are made annually at the end of each annual period beginning on September 1, 2021. $Step by Step Solution
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