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Suppose you are going to receive $ 1 3 , 5 0 0 per year for five years. The appropriate discount rate is 5 .

Suppose you are going to receive $13,500 per year for five years. The appropriate discount rate is 5.5 percent.
(1) What is the present value of the payments if they are in the form of an ordinary annuity? (2) What is the present
value if the payments are an annuity due?

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