You pay $32,000 today (t=0) and obtain (purchase) a 9 percent annuity (r=0.09) with 24 annual payments
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You pay $32,000 today (t=0) and obtain (purchase) a 9 percent annuity (r=0.09) with 24 annual payments (you will receive 24 payments). The first payment on the annuity is made in two years (t = 2). What will the annual cash flow be (the payment C)? Please draw the timeline and match it to the annuity formula
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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