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EBK CONTEMPORARY FINANCIAL MANAGEMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 29P

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A series of four annual constant-dollar payments beginning with $10,000 at the end of the frst year is growng at the rate of 8% per year. Assume that the base year is
the current year (n=0) The market interest rate is 15% per year and the general infiation rate (f) is 7% per year
(a) Eind the present worth of this series of payments, based on constant-dollar analysis
The present worth is $ (Round to the nearest dollar)

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