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What is the present value of twelve annual payments of $5,000, starting today if the interest rate is 13%?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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What is the present value of twelve annual payments of $5,000, starting today if the interest rate is 13%? (Show using BA II Plus or By Hand)

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