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    Present value of annuity

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    How much would you have to invest today to receive:

    a. $15,000 in 8 years at 10 percent?
    b. $20,000 in 12 years at 13 percent?
    c. $6,000 each year for 10 years at 9 percent?
    d. $50,000 each year for 50 years at 7 percent?

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    Solution Preview

    Here we have to find out the present value of annuity
    P=present value, A= Annuity r= rate of interest ...

    Solution Summary

    This explains the steps to compute present value of annuity with examples