The present value of a 10-year annuity of $3,000 per year at an interest rate of 12%. Introduction: Present value: The current value of an investment or asset is termed as its present value. It is calculated by discounting the future value of the investment or asset. Annuity Due: The annuity payment not paid straightaway at the beginning of each year is termed as the annuity due.

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Chapter 9, Problem 28P

Summary Introduction

To calculate: The present value of a 10-year annuity of $3,000 per year at an interest rate of 12%.

Introduction:

Present value:

The current value of an investment or asset is termed as its present value. It is calculated by discounting the future value of the investment or asset.

Annuity Due:

The annuity payment not paid straightaway at the beginning of each year is termed as the annuity due.

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