t value of an annuity Determine the present value of $200,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows: a.  By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Present value of an annuity

Determine the present value of $200,000 to be received at the end of each of 4 years, using an interest rate of 7%, compounded annually, as follows:

a.  By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

 

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By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar.

Year Present Value
First year $fill in the blank 1
Second Year   fill in the blank 2
Third Year   fill in the blank 3
Fourth Year   fill in the blank 4
Total present value

 

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