fin3331 021901 tvm annuities methods

fin3331 021901 tvm annuities methods - Jesse James share:...

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Fin3331.0219b fin3331.01002b Quiz: What is the present value of 10 equal annual payments of 35 each, if the first payment is to be received at the end of the year and if the discount rate is 15 percent? Financial calculator method N=10 I = 15 PMT = 35 FV = 0 CPT PV = –175.65 Jesse James Method PV Perpetuity = 35/.15 = 233.33
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Unformatted text preview: Jesse James share: Step one 1.15^10 = 4.0456 Step two 233.33/4.0456 = 57.68 Step three PV annuity = 233.33 57.68 = 175.65 Individual payment discounting method PV = 30.43 + 26.47 + 23.01 + 20.01+ 17.40 + 15.13 + 13.16 + + 11.44 + 9.95 + 8.65 PV = 175.65...
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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.

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