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Determine the present value on 31 december

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Using the appropriate annuity formula and assuming 12% annual interest rate, determine the present value on 31 December, 2013, of a five-period annual annuity of $5,000 under the following situations:

a. The first deposit is made on 31 December, 2014, and interest is compounded annually.

b. The first deposit is made on 31 December, 2013, and interest is compounded annually.

Reference no: EM132783479

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