Question 14 (3.3 points) Assume you are to receive a 10-year annuity with annual payments of...

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Question 14 (3.3 points) Assume you are to receive a 10-year annuity with annual payments of $ 237. The first payment will be

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Answer 1

Answer #1

PMT =237
Number of periods =10
Rate =10%
FV at year 10 using annuity due formula =(1+r)*PMT*((1+r)^n-1)/r) =(1+10%)*237*((1+10%)^10-1)/10%)=4154.8866

Value at end of annuity =4154.8866*(1+10%)^10 =10776.71

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Answer 2

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