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a. Linda Plant Hire Ltd has signed a loan contract to purchase a new tractor. The interest rate is 8% and the annuity consists of

a. Linda Plant Hire Ltd has signed a loan contract to purchase a new tractor. The interest rate is 8% and the annuity consists of six cash payments of $6000 payable annually.

Calculate the value of the annuity today if the first cash flow is to be paid:

i. in one year

ii. in four years

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