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You are set to receive an annual payment of 10600 per year for the next 12...

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Finance

You are set to receive an annual payment of 10600 per year forthe next 12 years. Assume the interest rate is 5.5 percent. Howmuch more are the payments worth if they are received at thebeginning of the year rather than the end of the year

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4.3 Ratings (535 Votes)
Formula for present value of ordinary annuity is PV P x 11rnr P Periodic Payment 10600 r Rate per period 55 or 0055 pa n Numbers    See Answer
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You are set to receive an annual payment of 10600 per year forthe next 12 years. Assume the interest rate is 5.5 percent. Howmuch more are the payments worth if they are received at thebeginning of the year rather than the end of the year

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