You expect to receive $8,000 at the end of each year for the next ten years, followed by a single cash flow of $17,000 at the end of year 11. If the discount rate is 8%, what is the present value of this combined annuity? Round to the nearest dollar.

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.