Question
Jill purchases an annuity that pays $1,000 per month for the next 300 months, with no value at the end of the 300 months (FV=0).
Jill purchases an annuity that pays $1,000 per month for the next 300 months, with no value at the end of the 300 months (FV=0). If interest rates are 12% APR, what is the fair PV of this annuity if it is an annuity due (i.e. the first payment is made immediately)?
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
