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Mashcka [7]
3 years ago
13

What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment

Business
1 answer:
Doss [256]3 years ago
6 0

Answer:

$882.03

Explanation:

Interest rate used is 7.23%

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 to 12 = 58

cash flow in year 13 = 1058

I = 7.23

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Common stock

If a corporation has only one class of stock, it is referred to as Common stock.

<h3>What is a common stock?</h3>
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<h3>What is the name of common stock?</h3>

ordinary share

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  • There are several words that are equivalent to the term "common stock," such as "common share," "ordinary share," or "voting share."

<h3>The benefits of common stock</h3>
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