1. Answer following questions. (a) An investment will provide you with $100 at the end of...
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1. Answer following questions. (a) An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? (b) What is the present value of the above if the payments are received at the beginning of each year? (c) If you deposit those payments into an account earning 8%, what will the future value be in 10 years? 1. Answer following questions. (a) An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? (b) What is the present value of the above if the payments are received at the beginning of each year? (c) If you deposit those payments into an account earning 8%, what will the future value be in 10 years?
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