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Calculating Annuity Present Values An investment offers $ 6 , 1 2 5 per year for 1 5 years, with the first payment occurring one

Calculating Annuity Present Values An investment offers $

6, 125

per year for

15

years, with the first payment occurring one year from now. If the required return is

8

percent, what is the value of the investment? What would the value be if the payments occurred for

40

years? For

75

years? Forever?

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