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PV ( EV 24 2.56 (1+0.09)10 FV $3,6 32.20 EV 7. To have $50,000 ready for a down payment for a mortgage loan from a bank in te

no 8 please

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Answer #1

The present value of an annuity is given by the formula

PV = PMT* - 1-(1+r/100)-- r/100

Where PMT is the annual payment, r is the discount rate, n is the number of years.

By this formula, the present value of the stream of payments is

1-(1 + 8/100) -20 8/100 00 1-(1+r/100)- PV = PMT* r/100 1 - (1 +0.08)-20 - = 490, 907.37 0.08 = 50000*

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