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A 5-year annuity of ten $7,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. Required :
| A 5-year annuity of ten $7,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. |
| Required : | |
| (a) | If the discount rate is 7 percent compounded monthly, what is the value of this annuity 5 years from now? |
| (Click to select) 58,065.59 43,920.74 20,163.99 43,042.33 47,095.78 | |
| (b) | What is the current value of the annuity? |
| (Click to select) 32,082.22 30,362.27 14,223.78 30,981.91 58,065.59 |
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