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Suppose you are going to receive $6,000 per year for 8 years. The appropriate interest rate is 8 percent per year. Requirement 1: (a) What
Suppose you are going to receive $6,000 per year for 8 years. The appropriate interest rate is 8 percent per year. Requirement 1: (a) What is the present value of the payments if they are in the form of an ordinary 'annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b), What is the present value if the payments are an annuity due (cash flow starts at the 'beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)
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