5) Consider an annual annuity composed by 10 payments equal to 125 € in the first 3 years and 150 € in the following period. Compute the value of the annuity after 5 years at the annual instantaneous rate 3%. a) 1297.89 € b) 1305.07 € c) 1302.8 € d) 1401.07 €
5) Consider an annual annuity composed by 10 payments equal to 125 € in the first 3 years and 150 € in the following period. Compute the value of the annuity after 5 years at the annual instantaneous rate 3%. a) 1297.89 € b) 1305.07 € c) 1302.8 € d) 1401.07 €
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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Answer the following question. please don't use excel to solve this problem. just paper and use formula to solve it. thank you
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Step 1
Annuity refers to series of equalized payments that are paid or received at start or ending of specific period over constant time period. It is either used as recovery or accumulation of lump-sum amount (Sinking-Fund) considering compounding factor.
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