Question
Suppose you are going to receive $8,000 per year for 7 years. The appropriate interest rate is 11 percent. a. What is the present value
Suppose you are going to receive $8,000 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?
| b. | What is the present value if the payments are an annuity due? |
| c. | Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
16th Edition
013749601X, 978-0137496013
