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Unformatted text preview: earn 12% per year? Present Value of Annuity is the amount that must be deposited today at a specific interest rate to permit withdrawal of $1 at end of regular periodic intervals for the specified time period. This is useful in determining what amount must be invested today to permit withdrawal at the end of each period given the interest rate? Example, how much should I invest today if my money will earn 20% annually so I can withdraw $20,000 per year for 3 years? Present Value of Annuity is the amount to which payment of $1 will accumulate if payments are to be made at the end of each period at the given interest rate. It is useful in determining what will be the value of the investment after the specified period at a given interest rate if payments are to be made at the end of each period? Example, how much wills my investment worth after 10 years if I will deposit $1,000 at the end of each year at 12% per year?...
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This note was uploaded on 01/04/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.
 Spring '08
 WILLIAMS
 Finance, Time Value Of Money, Annuity, Future Value

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