What is the present value of a 5-year ordinary annuity
with annual payments of $200, evaluated at a 15% interest rate?
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Hi, Below is the solution to the problem
PV of an annuity is given by
Pv = C*(1-(1+i)^-n)/i)
C = Cash flow per period
i = interest raten = number of payments
the present value will therefore be
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