Question: This problem demonstrates the dependence of an annuitys present value on the size of the periodic payment. Calculate the present value of 25 end-of-year payments

This problem demonstrates the dependence of an annuity’s present value on the size of the periodic payment. Calculate the present value of 25 end-of-year payments of:
a. $1000.
b. $2000.
c. $3000.
Use a discount rate of 8% compounded annually. After completing the calculations, the present value is proportional to the size of the periodic payment.

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