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    Capital recovery value of annuity

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    1. How much would you have to invest today to receive $12000 in three years for Great Barrier Reef

    P=present value, F= Future value r= rate of interest n=duration
    P=F/(1+r)^n

    a. at 4 %

    b. at 10 percent?

    b. at 18 percent?

    2. Case of Partial retirement

    3. Case of Lottery

    4. Case of professional Athlete

    (See attached file for full problem description)

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    1. How much would you have to invest today to receive $12000 in three years for Great Barrier Reef

    P=present value, F= Future value r= rate of interest ...

    Solution Summary

    This provides the steps to calculate the Capital recovery value of annuity and other TVM cases.

    $2.49

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