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solve using Excel Present values Assume you are able to purchase a financial instrument (an annuity) that will pay you $600 on the first day

solve using Excel

Present values

Assume you are able to purchase a financial instrument (an annuity) that will pay you $600 on the first day of each month for the next five years. Ignoring any problems of collectability and assuming 7.21% annually (7.21% / 12 monthly) is a proper discount rate, how much should you pay for this financial instrument if you want to purchase it?

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