The present value of an annuity with the first payment starts 10 years from today can be
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Question:
The present value of an annuity with the first payment starts 10 years from today can be calculated in two steps:
(1) using the PV of an ordinary annuity formula calculate the present value of the annuity at _____
(2) then discount back the answer found in part 1 to time zero by calculating the present value of this amount using single cash flow PV formula PV=FV/(1+i)^n
Select one:
a.
the end of year 10
b.
the end of year 9
c.
the start of year 9
d.
the end of year 8
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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