What does the present value of an annuity indicate

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1. Present Value of Annuity. What formula is used to determine the present value of an annuity? What does the present value of an annuity indicate?

2. Future Value of Annuity. How would you modify the FVA equation to determine how much you would need to save each month to have a specific amount at a specific time in the future?

3. Number of Periods. In determining the future value of an annuity to be invested monthly over a five-year period, what number of periods should you use?

Reference no: EM131306599

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