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C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,500 each. At the
C&H Ski Club recently borrowed money and agreed to pay it back with a series of six annual payments of $5,500 each. At the same time, C&H borrowed additional money and agreed to pay it back with a series of four annual payments of $8,250 each. The annual interest rate for both loans is 9%. (PV of $1. FV of $1. PVA of $1, and FVA of $1) Note: Use factor(s) from the tables provided. Round answers to nearest whole dollar. Round "Table Factor" to 4 decimal places. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the correct table to find the present value of these two separate annuities. Note: Round amounts to the nearest dollar. First Annuity Number of Periods Interest Rate Single Future Payment Table Factor Present Value First payment 1 9% $ 5,500 x Second payment 2 9% 5,500 x Third payment 3 9% 5,500 x 0 Fourth payment 4 9% 5,500 x 0 Fifth payment 5 9% 5,500 x = 0 Sixth payment 6 9% 5,500 x 0 0 Second Annuity Number of Periods Single Future Interest Rate x Table Factor = Present Value Payment First payment 1 9% $ 8,250 x = Second payment 2 9% 8,250 x = Third payment 3 9% 8,250 x = 0 Fourth payment 4 9% 8,250 x = 0 $ 0
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