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Present Value of Annuity; Amortization Find the present value of each annuity. 4. The withdrawal is to be $400 per month for

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Answer #1

4. Monthly interest rate = 0.05/12 = 0.004166666667

A loan of $5,000 amortized over 36 months at 12%

r = 12%/12 = 0.01 monthly rate

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