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Computing the Present Value of an Annuity Nicholas receives loan proceeds today from a financial institution. Nicholas agrees to pay the financial institution $1,000 at

Computing the Present Value of an Annuity

Nicholas receives loan proceeds today from a financial institution. Nicholas agrees to pay the financial institution $1,000 at the beginning of each month over a 3-year period, with the first payment due immediately. Assuming the interest rate on the loan is 8.5%, what is the present value of the loan?

  • Round answer to the nearest whole dollar.
  • Do not use a negative sign with your answer.

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