Question

Asked Dec 8, 2019

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The present value of $500 to be received at the end of each year for seven years at a

discount rate of 8 percent is ?

Step 1

Annuities are a regular stream of payments made for a defined period. Resent value of these annuities can b determined using a formula.

Step 2

Here,

Annuity payment ( P ) = $500

Number of years ( n ) = 7

Discount rate (...

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