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Assume that today is January 1, year 1. Given a discount rate of 8%, calculate the following values. Part 1: an annuity of $65 received
Assume that today is January 1, year 1. Given a discount rate of 8%, calculate the following values. Part 1: an annuity of $65 received at the end of each year for five years (i.e., each December 31 from year 1 to year 5) Part 2: an annuity of $65 received at the end of each year for 10 years (i.e., each December 31 from year 6 to year 15) Part 3: a perpetuity of $65 received at the end of each year from year 16 to the end of time (i.e., each December 31 from year 16 and forever thereafter)
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