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Present Value of an Annuity Determine the present value of $260,000 to be received at the end of each of four years, using an interest
Present Value of an Annuity
Determine the present value of $260,000 to be received at the end of each of four years, using an interest rate of 5.5%, compounded annually, as follows:
a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.
First year | $fill in the blank 1 |
Second Year | $fill in the blank 2 |
Third Year | $fill in the blank 3 |
Fourth Year | $fill in the blank 4 |
Total present value | $fill in the blank 5 |
b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar.
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