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The following payments are made under an annuity: 10 at the end of the fifth year, 9 at the end of the sixth year, decreasing by 1 each year until nothing is paid. Show that the present value is 10 - α₁4+ a(1 - 10i) az i

The following payments are made under an annuity: 10 at the end of the fifth year, 9 at the end of the sixth year, decreasing by 1 each year until nothing is paid. Show that the present value is 10 - α₁4+ a(1 - 10i) az i

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
Problem 1PS
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The following payments are made under an annuity: 10 at the end of the fifth year, 9 at the end of the sixth year, decreasing by 1 each year until nothing is paid. Show that the present value is 10 - a14/+a(1-10i) i
Transcribed Image Text:The following payments are made under an annuity: 10 at the end of the fifth year, 9 at the end of the sixth year, decreasing by 1 each year until nothing is paid. Show that the present value is 10 - a14/+a(1-10i) i
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