1+r-1 Show that A1+r+ A, the present value of a series of equal payments, A, at...

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1+r-1 Show that A1+r+ A, the present value of a series of equal payments, A, at t=1 r1+r T the end of each year for T years. What is the impact of an increasing interest rate over time on the present value? 1+r-1 Show that A1+r+ A, the present value of a series of equal payments, A, at t=1 r1+r T the end of each year for T years. What is the impact of an increasing interest rate over time on the present value?

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We can prove the formula that the present value PV of a series of equal payments A at the end of each year for T years discounted at an interest rate ... View the full answer