What is the present value of the following annuities? a. $2,500 a year for 10 years discounted

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What is the present value of the following annuities?

a. $2,500 a year for 10 years discounted back to the present at 7 percent

b. $70 a year for 3 years discounted back to the present at 3 percent

c. $280 a year for 7 years discounted back to the present at 6 percent

d. $500 a year for 10 years discounted back to the present at 10 percent

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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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Question Posted: Oct 31, 2014 07:25 AM

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What is the present value of the following annuities? a. $2,500 a year for 10 years discounted

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To find the present value PV of an ordinary annuity we use equation 62b For example for part a we ha...View the full answer

Financial Management Principles and Applications

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