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8. + 0/1 points Previous Answers SApCalcBr1 6.2.027. My Notes + Ask Your Teacher A retiree is paid $1800 per month by an annu

Please answer these two questions! These questions are from the chapter integrals.

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Answer #1


ert 1 FVA w/ Continuous Comp. = CFX er -1 FVA = Future Value of Annuity CF = Cash Flow r=rate t=time

- 120.00 0.00500 1 - e $1,800.00 x — 0.500%

=$295223.8

NPV = Annual Payment * PVAIF (20 Years,7%) =$200000*10.59401 = $2118802.85 Or =$2118802 (there may be round off error hence t

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