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Present value of future payments

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Question: You will receive equal payments of $1000 per year for each of the years 5 through 10. You will not receive any payments in Year 1 through 4.

The interest rate is 3% for the first 4 years and 5% for the next 6 years. What is the present value of these future payments?

Demonstrate using both Future Value Annuity and Present Value Annuity approaches. Will you get different answers for each approach?

Reference no: EM133068967

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