An annuity will pay four annual payments of $100, with the first payment to be received three years from now. If the interest rate is 12 percent per year, what is the present value of this annuity? Use the appropriate table located at the end of the textbook to solve this problem. a. $181 b. $242 c. $304 d. $400

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A: To Find: Which annuity reach FV of $100,000 earlier

Q: son.1

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Q: son.2

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A: Annuity is the series of equal cash payments over the period.

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A: Interest rate = 12%Term = 5 YearsAnnual payment = $100

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…

A: RATE (6%/12) 0.50% PERIOD  (15*12) 180 PMT (MONTHLY PAYMENT) 40 PRESENT VALUE $0 MONTHLY…

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A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%

Q: What amount today

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A: Odinary annuity is where payment is due at end of period and annuity due is where payment is due at…

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