t value of an annuity Determine the present value of $200,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows: a.  By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
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Present value of an annuity

Determine the present value of $200,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows:

a.  By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

 

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By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

Year Present Value
First year $fill in the blank 1
Second Year   fill in the blank 2
Third Year   fill in the blank 3
Fourth Year   fill in the blank 4
Total present value

 

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