The present value of an annuity stream of $100 per year is $920 when valued at a 10% rate. By approximately how much would the value change if these were annuities due? A. An increase of $10 B. An increase of $92 C. An increase of $100 D. Unknown without knowing number of payments
The present value of an annuity stream of $100 per year is $920 when valued at a 10% rate. By approximately how much would the value change if these were annuities due? A. An increase of $10 B. An increase of $92 C. An increase of $100 D. Unknown without knowing number of payments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The present value of an annuity stream of $100 per year is $920 when valued at a 10% rate. By approximately how much would the value change if these were annuities due?
A. An increase of $10
B. An increase of $92
C. An increase of $100
D. Unknown without knowing number of payments
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