This problem demonstrates the dependence of the present value of an annuity on the discount rate....

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This problem demonstrates the dependence of the present value of an annuity on the discount rate. For an ordinary annuity consisting of 25 annual payments of $1,300, calculate the present value using an annually compounded discount rate of: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. 5.3% $ SA b. 10.3% $ c. 11.3% $ d. 15.3% $ Observe that the present value decreases as you increase the discount rate. However, the present value decreases proportionately less than the increase in the discount rate. Drov This problem demonstrates the dependence of the present value of an annuity on the discount rate. For an ordinary annuity consisting of 25 annual payments of $1,300, calculate the present value using an annually compounded discount rate of: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. 5.3% $ SA b. 10.3% $ c. 11.3% $ d. 15.3% $ Observe that the present value decreases as you increase the discount rate. However, the present value decreases proportionately less than the increase in the discount rate. Drov

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To calculate the present value of an ordinary annuity consisting of 25 annual payments of 1300 we ca... View the full answer