16) What is the present value of $1,500 payments received at the beginning of each year...

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Answer 1

Answer #1

Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate

=1.06525*1500[1-(1.06525)^-10]/0.06525

=1500*7.64895019

=$11473.43(Approx).

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Answer 2

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