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charle [14.2K]
3 years ago
10

You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. One annuity will pay $2,

000 annually, starting today, for 20 years. The second annuity will pay annually, starting one year from today, for 20 years. What is the annual payment for the second annuity
Business
1 answer:
MAVERICK [17]3 years ago
4 0

Answer:

the annual payment for the second annuity is $2,130 paid at end of every year

Explanation:

We have following information for 1st annuity:

Rate: 6.5%

Payment (PMT): -$2,000, paid at beginning of every year

Tenor (Nper): 20 years

We use excel to calculate the present value of annuity = PV(rate,Nper,PMT,,1)

=PV(6.5%,20,-2000,,1) = $23,469

Then we calculate the payment for 2nd annuity = PMT(rate,Nper,PV,,0)

=PMT(6.5%,20,23469,,0) = -$2,130

Download xlsx
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A factory produces gadgets that have two key parts. The factory can employ workers to attach those parts, or it can employ robot
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BOTH THE HUMAN WORKERS AND ROBOTS CAN BOTH BE ENGAGED TO ATTACH THE PARTS,WHICH MEANS IN THE ABSENCE OF ONE THE OTHER CAN CARRY OUT THE RESPONSIBILITY OF THAT ONE.

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3 years ago
There are three elements in any integrated marketing communication strategy: the ________, the channels through which the messag
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8 0
2 years ago
Chez Fred Bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2
steposvetlana [31]

Answer:

See below

Explanation:

Per the above information,

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