Deferred annuity-present value of all three future benefits

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Deferred annuity

Del Monty will receive the following payments at the end of the next three years: $22,000, $25,000, and $27,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $28,000 per year.

At a discount rate of 10 percent, what is the present value of all three future benefits? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods

Reference no: EM131535340

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