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What is the present value of an ordinary annuity that pays $125 per year for 14 years at 5%? Assume annual compounding. (round your answer

What is the present value of an ordinary annuity that pays $125 per year for 14 years at 5%? Assume annual compounding. (round your answer to the nearest dollar)

As the compound interest rate increases, the present value of future cash flows decreases.

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