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OFFER 3: A trust fund would be set up for the next eight years. At the end of that period, Dr. Wolf would receive the
OFFER 3: A trust fund would be set up for the next eight years. At the end of that period, Dr. Wolf would receive the proceeds (and discount them back to the present at 10 percent). The trust fund called for semiannual payments for the next eight years of $200,000 (a total of $400,000 per year) The payments would start immediately. Since the payments are coming at the beginning of each period instead of the end, this is an annuity due. Assume the annual interest rate on this annuity is 10 percent annually (5 percent semiannually). Determine the present value of the trust fund's final value. Hint: See the section on Annuities Due. offers and indicate which one has the REQUIRED: Find the present value of each of the highest present value
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