April Stigum will receive a 20-year annuity of $20,000 annually, beginning six years from today. In other words, the first payment of twenty payments will be made at the end of year 6. Assuming a required rate of return of 5%, calculate the present value today of her annuity. (Round to 2 decimals)

April Stigum will receive a 20-year annuity of $20,000 annually, beginning six years from today. In other words, the first payment of twenty payments will be made at the end of year 6. Assuming a required rate of return of 5%, calculate the present value today of her annuity. (Round to 2 decimals)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 12E

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Question

April Stigum will receive a 20-year annuity of $20,000 annually, beginning six years from
today. In other words, the first payment of twenty payments will be made at the end of year 6.
Assuming a required rate of return of 5%, calculate the present value today of her annuity.
(Round to 2 decimals)

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