Calculate the present value at the beginning of ninth year

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Problem 1: You are given an annuity-immediate with eleven annual payments of $100 and a final balloon payment at the end of twelve years. At an annual effective interest rate of 3.5%, the present value at time 0 of all payments is $1,000. Using an annual effective interest rate of 1%, calculate the present value at the beginning of the ninth year of all remaining payments.

Reference no: EM132705158

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