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Annuity Values

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a) What is the present value of a 3-year annuity of $100 if the discount rate is 6 percent?

b) What is the present value of the annuity from part (a) of this question if you have to wait 2 years instead of 1 year for the payment stream to start?

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This solution looks at annuity values.

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The present value of a $1 annuity is equal to:
[1/r] - [1/(r * (1 + r)^t)] where r is the ...

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