Present value of an annuity Determine the present value of $200,000 to be received at the...
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Present value of an annuity Determine the present value of $200,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. c. Why is the present value of the four $200,000 cash receipts less than the $800,000 to be received in the future? The present value is less due to the 4 years. over Present value of an annuity Determine the present value of $200,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. c. Why is the present value of the four $200,000 cash receipts less than the $800,000 to be received in the future? The present value is less due to the 4 years. over
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