"Problem $3-7$

An investor is considering an investment that will pay $$2,150$ at the end of each year for the next $10$ years. He expects to earn a return of $12$ percent on his investment, compounded annually.

Required:

a$.$ How much should he pay today for the investment?

b$.$ How much should he pay if the investment returns are received at the beginning of each year?

Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar.

a$.$ Present value of ordinary annuity

b$.$ Present value of annuity due

"Problem $3-7$

An investor is considering an investment that will pay $$2,150$ at the end of each year for the next $10$ years. He expects to earn a return of $12$ percent on his investment, compounded annually.

Required:

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a$.$ How much should he pay today for the investment?

b$.$ How much should he pay if the investment returns are received at the beginning of each year?

Note: For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar.

a$.$ Present value of ordinary annuity

b$.$ Present value of annuity due