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Page 1: Please Fill all the blanks in 7.3 and two other blanks in 7.4 Page 2: Please Fill all the blanks in 7.10 and
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(7.3) A PV can be caleulated by substituting known values of the and the into the basic PV equation as follows: PV determined by multiplying the future value (FV) times the interest factor: PV- value interest factor (PVIF) and is abbreviated determined from tables. The PVIF is also called tho is also referred to as Or, we can rearrange the basic PV equation so the PV is of the FV is called the present The PVIF can be , and computing a PV " The term - valuation. (74) A FV with multiple cash flows can be computed by finding the_ tna APV with maltiple of each cash of each deposit and then summing the separate cash flows can be calculated by separately computing the-pak.nl.-- flow and then summing the separate (7.5) An annuity is a series of Eual ammual cash flows that occur atfscon intervals for a speahol the time period, the annuity is referred to as an-atra - _ annuity or a had number of periods. when the payments occur at the end of fematannuity. If payments are at the beginning of the time period, we call the annuity an_amamec (7.6) The PV ofan annuity formula is:1,-/tr.erl , where PV is the present value of the annuity, C is the, Petarht, and PVIF Ach) is the-peathake-titttpctw PVIFA(r.t) can be determined either from a table or from the following formula: PVIFA.) (7.7) The FV of an annuity formula is: FV-Lu where FV is the future value of the ammuity, Cis the eznad peqyment and FVIFA(c) is the fatant vale istoat foctor FVIFA(r,t) can be determined either from a table or from the following formula: FVIFAG) Please Fill all the blanks in 7.3 and two other blanks in 7.4
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Please Fill all the blanks in 7.10 and last blank in 7.9
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