Question: Calculating Present Values a 5-year annuity often $6,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now.

Calculating Present Values a 5-year annuity often $6,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 10 percent compounded monthly, what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?

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The cash flows in this problem are semiannual so we need the effective semiannual rate The interest ... View full answer

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