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d escribe three ( 3 ) methods for calculating the value of an annuity of $ 1 0 0 per year for 5 years starting

d escribe three $(3)$ methods for calculating the value of an annuity of $ $100$ per year for $5$ years starting at t $1$ using a $6 %$ discount rate. What is the PV of this annuity?

Draw a clearly marked number line demonstrating how this annuity is the difference between two perpetuities and show your calculations. Generally speaking, what is the purpose of discounting future cash flows?

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