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Unformatted text preview: This is how much it would take to produce an income of 1.00 each year, for 5 years PV = 100 * 4.1002 = 410.02 Method 4: Use of financial calculator N= 5 PMT = 100 FV=0 I=7 CPT PV = 410.02 Note: This amount is less than 1,428.57 because we are not going to collect forever. We are only going to collect for 5 years. Note: This amount is less than 500, because the 5 payments are delayed from 1 to 5 years. Quiz: What is the present value of n equal annual payments of x each, if the first payment is to be received at the end of the year and if the discount rate is 15 percent?...
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This note was uploaded on 02/22/2011 for the course FIN 3331 taught by Professor Nowacki during the Spring '09 term at Troy.
 Spring '09
 NOWACKI
 Annuity, Perpetuity

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