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    Example Calculation of Present Values

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    An annuity pays $250 per year and the discount rate is 10%.

    A. What is the present value of a 5 year annuity?

    B. PV of a 10 year annuity?

    c. PV of a 100 years annuity?

    d.What is the present value of a perpetuity?

    e. Do you detect a relationship between the number of periods of an annuity and its resemblance to a perpetuity?

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    An annuity pays $250 per year and the discount rate is 10%. A.What is the Present value of a 5 yr. annuity ? B. PV OF A 10 YR. ANNUITY c. PV OF A 100 yR. ANNUITY d.wHAT IS THE PRESENT ...

    Solution Summary

    The solution shows step by step calculation of annuities over different periods.