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(6 points) Consider a quarterly 27-payment annuity, where each payment is $60. Suppose that the nominal annual discount rate is 8% compounded monthly. Find: a)
(6 points) Consider a quarterly 27-payment annuity, where each payment is $60. Suppose that the nominal annual discount rate is 8% compounded monthly. Find: a) the present value of the annuity one quarter before the first payment; Answer = $ 1240.33 Click for a hint b) the present value of the annuity one year before the first payment; Answer = $ 1168.33 c) the accumulated value of the annuity at the time of the last payment; and Answer = $ 2184.61 d) the accumulated value of the annuity one year after the last payment. Answer = $ 2365.93
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