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Exercise 6 - 1 7 ( Algo ) Present value calculations Appendix LO 6 - 1 0 Using a present value table ( Table 6
Exercise Algo Present value calculations Appendix LO
Using a present value table Table and Table calculate the present value for the following:
Note: Use the appropriate values from the tables provided and final answers to the nearest whole dollar.
Required:
a A car down payment of $ that will be required in two years, assuming an interest rate of
b A lottery prize of $ million to be paid at the rate of $ per year for years, assuming an interest rate of
c The same annual amount as in part b but assuming an interest rate of
d A financing lease obligation that calls for the payment of $ per year for years, assuming a discount rate of
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