Find the present value of the following ordinary annuities (see note to Problem 2-4): a. $400 per
Question:
Find the present value of the following ordinary annuities (see note to Problem 2-4):
a. $400 per year for 10 years at 10 percent.
b. $200 per year for 5 years at 5 percent.
c. $400 per year for 5 years at 0 percent.
d. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.
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The general formula is PVA n PMT PVIFA in a PV 400 61446 245783 With a financial calculator s...View the full answer
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Related Book For 
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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