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Suppose you are going to receive $10,000 per year for 7 years. The appropriate interest rate is 11 percent. a. What is the present value
Suppose you are going to receive $10,000 per year for 7 years. The appropriate interest rate is 11 percent. |
a. | What is the present value of the payments if they are in the form of an ordinary annuity? |
47126.96
69818.65
56829.67
95896.48
52305.38
b. | What is the present value if the payments are an annuity due? |
52305.38
77498.70
59955.30
101170.79
47121.96
c. | Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity? |
97832.74
300949.18
82668.94
202925.72
108594.34
d. | Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an annuity due? |
108594.34
334053.59
87215.73
214086.63
97832.74
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