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Suppose you are going to receive $17,000 per year for 10 years. The appropriate interest rate is 9 percent. a. What is the present value
| Suppose you are going to receive $17,000 per year for 10 years. The appropriate interest rate is 9 percent. |
| a. | What is the present value of the payments if they are in the form of an ordinary annuity? |
| b. | What is the present value if the payments are an annuity due? |
| c. | Suppose you plan to invest the payments for 10 years. What is the future value at the end of Year 10 if the payments are an ordinary annuity? |
| d. | Suppose you plan to invest the payments for 10 years. What is the future value at the end of Year 10 if the payments are an annuity due? |
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The Value Investor's Handbook
Authors: Andrew P.C.
1st Edition
1098810449, 978-1098810443
