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3. 4. 5. 2. Consider the following three regular (deferred) annuities: A. B. C. 0 annual S amountrate 12,000 55,000 700 A B. C.

3. 4. 5. 2. Consider the following three regular (deferred) annuities: A. B. C. 0 annual S amountrate 12,000

3. 4. 5. 2. Consider the following three regular (deferred) annuities: A. B. C. 0 annual S amountrate 12,000 55,000 700 A B. C. For each of the three regular (deferred) annuities (A, B. C), calculate the present value (PV). 0 annual Samountrate 2,500 500 30,000 Now, consider the following three annuities due: annual 7 12 20 $1200 annual 1 8 12 20 Consider the following finite set of annual cash flows. 1 years For each of the three annuities due (A, B, C), calculate the future value (FV). 2 What is the difference between a regular (deferred) annuity and an annuity due? $3500 2 years number of 3 15 9 number of SO 10 6 3 Consider the following set of a finite set of semi-annual cash flows. $1200 - $4800 Assume a required rate of return (interest rate, discount rate) of 8% per year, compounded annually. What is the total present value (PV) of this set of cash flows? 3 $1200 $175 4 5 years $221 Assume a required rate of return (interest rate, compounding rate) of 6% per year, compounded semi-annually. What is the total present value (PV) of this set of cash flows? -$100 5 half years 1 $100

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