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Which of the following are true? a. There is no such thing as PV pf a perpetuity b. The formula of PV of an annuity
Which of the following are true?
a. There is no such thing as PV pf a perpetuity
b. The formula of PV of an annuity would give us the value at the end of the year 4 for an annuity with a first payment that occurs at end of year 5
c. The time for a lender $1000 for one year at a rate of 8% compounded annually would include a negative $1080 at the end of year 1
d. The compounding process subtracts the interest part from the PV
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