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melamori03 [73]
3 years ago
12

You are to receive an annuity of $1,000 per year for 10 years. You will receive the first payment two years from today. At a dis

count rate of 10%, what is the present value of this annuity?
Business
1 answer:
Neporo4naja [7]3 years ago
8 0

Answer:

present value of annuity is $61445.66

Explanation:

given data

annuity P = $1,000 per year

time t  = 10 year

rate r = 10% = 0.01

to find out

present value of annuity

solution

we will apply here present value formula that is

present value = P ( 1 - ( 1 + r )^-t ) / r  ..........................1

put here all value for r, t  and P in equation 1

present value = P ( 1 - ( 1 + r )^-t ) / r

present value = 1000 ( 1 - ( 1 + 0.1 )^-10 ) / 0.01

present value = 61445.66

so present value of annuity is $61445.66

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Answer:

The alignment of the choices are off but here's the explanation for solving this question below;

Explanation:

Using a $ sign before a column label, keeps the reference to column fixed,

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kondaur [170]

Answer:

E, B, D, C, A, G, H, F

Explanation:

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3 0
3 years ago
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grandymaker [24]

Answer:

a)

Explanation:

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2 years ago
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bezimeni [28]

Answer:

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Total Revenue = $11,200

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7 0
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