Assume that you are attempting to find the present value of a 60- period, $100 annuity,...
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Assume that you are attempting to find the present value of a 60- period, $100 annuity, where the first payment takes place at Period 1, and the last payment takes place at Period 60 (some people would describe this as a regular annuity). However, these annuity payments are growing at a constant rate of 10 percent, so you will actually receive $110.00 at Period 1, $121.00 at Period 2, $133.10 at Period 3, etc. Finally assume that your required rate of return is 6.50 percent. Determine the present value, at Period 0, of this annuity. O $11,038.59 $15,599.97 O $18,730.19 O $13,078.57 $9,380.58 Assume that you are attempting to find the present value of a 60- period, $100 annuity, where the first payment takes place at Period 1, and the last payment takes place at Period 60 (some people would describe this as a regular annuity). However, these annuity payments are growing at a constant rate of 10 percent, so you will actually receive $110.00 at Period 1, $121.00 at Period 2, $133.10 at Period 3, etc. Finally assume that your required rate of return is 6.50 percent. Determine the present value, at Period 0, of this annuity. O $11,038.59 $15,599.97 O $18,730.19 O $13,078.57 $9,380.58
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