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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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Solution Summary

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

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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 ...

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