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    Time Value of Money Explained

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    Explain whether the following statement is true or false: $100 a year for 10 years is an annuity, but $100 in year 1, $200 in year 2, and $400 in years 3 through 10 does not constitute an annuity. However, the second series contains an annuity.

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    $100 a year for 10 years is an annuity because the annuity includes the ...

    Solution Summary

    The solution examines the time-value of money.

    $2.19

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