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You have just been notified that you will receive $8,700 a year for the next 17 years from an inherited trust. If the interest rate is 13 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)

You have just been notified that you will receive $8,700 a year for the next 17 years from an inherited trust. If the interest rate is 13 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)

FINANCIAL ACCOUNTING
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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You have just been notified that you will receive $8,700 a year for the next 17 years from an inherited trust. If the interest rate is 13 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)
Transcribed Image Text:You have just been notified that you will receive $8,700 a year for the next 17 years from an inherited trust. If the interest rate is 13 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)
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