A 1.5-year annuity pays $20,000 every 6 months and returns $400,000 at the end of the 1.5

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A 1.5-year annuity pays $20,000 every 6 months and returns $400,000 at the end of the 1.5 years. What is the Present Value of this annuity, if the semi-annually compounded interest rate is 8%?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: May 22, 2023 12:19 AM

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A 1.5-year annuity pays $20,000 every 6 months and returns $400,000 at the end of the 1.5

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To calculate the Present Value PV of the annuity we need to calculate the present value of the cash ... View the full answer

Principles of Finance

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