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Unformatted text preview: formula: PVOD = 100 [1 (1 + .1) 10 ] PVOD = 100 (6.144567106) PVOD = $614.46 3) What would the present value be if it was a 25year annuity? We would still be using the same equation so we can input the following into the same formula: PVOD = 100 [1 (1 + .1) 25 ] PVOD = 100 (9.077040018) PVOD = $907.70 (4) What would the present value be if this was a perpetuity? If we are given a perpetuity, the formula for its present value shall be this: PVperpetuity = PMT PVperpetuity = 100 PVperpetuity = $1000.00...
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 Summer '11
 Calamba

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