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14. Annuity A pays X at the end of each year. The first payment occurs at time 6 years, and the last payment occurs at time 10 years. Annuity B pays $81.06 at the end of each year. The first payment occurs at time 1 year, and the last payment occurs at time 5 years. The current value of annuity B at the end of five years is $475.54. The present value at time 0 of annuity A is twice the present value at time 0 of annuity B. Determine X. E 387 A 238 D 350 C 313 B 275

14. Annuity A pays X at the end of each year. The first payment occurs at time 6 years, and the last payment occurs at time 10 years. Annuity B pays $81.06 at the end of each year. The first payment occurs at time 1 year, and the last payment occurs at time 5 years. The current value of annuity B at the end of five years is $475.54. The present value at time 0 of annuity A is twice the present value at time 0 of annuity B. Determine X. E 387 A 238 D 350 C 313 B 275

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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14. Annuity A pays X at the end of each year. The first payment occurs at time 6 years, and the last payment occurs at time 10 years. Annuity B pays $81.06 at the end of each year. The first payment occurs at time 1 year, and the last payment occurs at time 5 years. The current value of annuity B at the end of five years is $475.54. The present value at time 0 of annuity A is twice the present value at time 0 of annuity B. Determine X. D 350 E 387 A 238 C 313 B 275
Transcribed Image Text:14. Annuity A pays X at the end of each year. The first payment occurs at time 6 years, and the last payment occurs at time 10 years. Annuity B pays $81.06 at the end of each year. The first payment occurs at time 1 year, and the last payment occurs at time 5 years. The current value of annuity B at the end of five years is $475.54. The present value at time 0 of annuity A is twice the present value at time 0 of annuity B. Determine X. D 350 E 387 A 238 C 313 B 275
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