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Suppose you are going to receive $ 1 3 , 0 0 0 per year for six years. The appropriate interest rate is 7 .

Suppose you are going to receive $13,000 per year for six years. The appropriate interest rate is 7.9 percent. a-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? b-1. Suppose you plan to invest the payments for six years. What is the future value if the payments are an ordinary annuity? b-2. Suppose you plan to invest the payments for six years. What is the future value if the payments are an annuity due?

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