Answered: What is the current worth of this…

Business

Accounting

What is the current worth of this annuity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On fourth thought, Emphatically Square and heirs will receive $2,500 a year for only 20 years, but it will grow by 3 percent annually. The long‐term annual expected interest rate is 7 percent. What is the current worth of this annuity? ( Do not round intermediate calculations and round the final answer to the nearest whole dollar.)

Annuity paid

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