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present value

  1. math_celebrity

    How much is $100 per month forever at 12% per year worth today?

    This is a perpetuity with payments assumed at the end of each month. 12% per year = 12/12 = 1% per month The present value of a perpetuity with payments at the end of the month is: Payment/I Plugging in our values, we get: 100/0.01 10,000
  2. math_celebrity

    Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity pay

    Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity payment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent? This is an annuity due, since the first payment is made on the date of...
  3. math_celebrity

    $150,000; 7%; 25 yr ordinary annuity formula

    $150,000; 7%; 25 yr ordinary annuity formula Answer for PV and AV
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