(Calculating the present value of an annuity due) What will be the present value of an annuity due of £800 a year for 12 years, discounted back to the present at an annual rate of 5 percent? What will be the present value of this annuity if the discount rate is 8 percent?

(Calculating the present value of an annuity due) What will be the present value of an annuity due of £800 a year for 12 years, discounted back to the present at an annual rate of 5 percent? What will be the present value of this annuity if the discount rate is 8 percent?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Interest, Rent, And Profit

Section: Chapter Questions

Problem 1WNG

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(Calculating the present value of an annuity due) What will be the present value of an
annuity due of £800 a year for 12 years, discounted back to the present at an annual
rate of 5 percent? What will be the present value of this annuity if the discount rate is
8 percent?

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