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Assuming a 10percent annual interest rate compounded continuously, what is the present value of an annuity that pays 400dollars a year (a) for the next
Assuming a 10percent annual interest rate compounded continuously, what is the present value of an annuity that pays 400dollars a year
(a) for the next 7 years(i.e, 400dollars 1 year later, 400 dollars 2 years later, 400dollars 3 years later,.. and 400 dollars 7years later) and
(b)forever?
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