Question: Calculating Present Values ) A 5 - year annuity of ten $ 7 , 0 0 0 semiannual payments will begin 8 years from now,

Calculating Present Values

)

5 -

year annuity of ten $

7, 000

semiannual payments will begin

8

years from now, with the first payment coming

8.5

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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