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 €

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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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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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 €
Transcribed Image Text: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 €
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