Ch $05-$End$-$of$-$Chapter Problems $-$ Time Value of Money

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Keep the Highest $/6$

Problem $5\mathrm{.}15($Present Value of an Annuity$)$

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest

cent.

a$.$ $$900$ per year for $14$ years at $12\%.$

$

b$.$ $$450$ per year for $7$ years at $6\%.$

$

c$.$ $$200$ per year for $7$ years at $0\%.$

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d$.$ Rework previous parts assuming they are annuities due.

Present value of $$900$ per year for $14$ years at $12\%$ : $

Present value of $$450$ per year for $7$ years at $6\%$ : $

Present value of $$200$ per year for $7$ years at $0\%$:$