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This problem demonstrates the dependence of an annuitys present value on the size of the periodic payment. Calculate the present value of 10 end-of-year payments
This problem demonstrates the dependence of an annuitys present value on the size of the periodic payment. Calculate the present value of 10 end-of-year payments of: (Do not round intermediate calculations and round your final answers to 2 decimal places.)
a. $2,800
b. $3,800
c. $4,800
Use a discount rate of 6.8% compounded annually. After completing the calculations, note that the present value is proportional to the size of the periodic payment.
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