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Sarah Allen just learned that she received an inheritance from her grandmother. The inheritance provides for Sarah to receive $5700 per year at the


 

Sarah Allen just learned that she received an inheritance from her grandmother. The inheritance provides for Sarah to receive $5700 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 13%, what is the value of this inheritance to Sarah today? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 PV ordinary annuity 55 13% 1.8424 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744

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