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Question

what is the present value of an incestment that pays $10,000 every year at year-end for the next 5years, and $15,000 every year at year-end for years6 thru 10? The annaul rate of interest for the investment is 9%

Submitted: 695 days and 4 hours ago.
Category: Finance
Value: $15
Status: CLOSED
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Accepted Answer

Present value of investment = Cash flow x present value interest factor for annuity @9%

= 10,000 x 3.8896 + 15,000 (6.4176 - 3.8896)

= 38,896 + 37,920

= $76,816

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Expert: Annie Kavitha
Pos. Feedback: 100.0 %
Accepts: 188
Answered: 4/25/2008

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M.Com

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