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Present value of annuity

A local bank advertises the following deal: "Pay us $100 a year for 10 years and then we will pay you (or your beneficiaries) $100 a year forever." Is this a good deal if the interest rate available on other deposits is 6 percent?

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Here we have to find out the present value of ...

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This provides the steps to calculate the present value of annuity

$2.19