Question
What is the PV of a 20-year annuity of $200, when its first payment is in one year? (for a rate of 5% AND 10%)
What is the PV of a 20-year annuity of $200, when its first payment is in one year? (for a rate of 5% AND 10%)
What is the PV of a 20-year annuity of $200, when its first payment is NOW? (for a rate of 5% and 10%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the present value PV of an annuity you can use the formula PV C 1 1 ...
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
