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Determine the present value of a five-period annual annuity

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Question - Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of $6,500 under each of the following situations.

1. The first payment is received at the end of the first year, and interest is compounded annually.

2. The first payment is received at the beginning of the first year, and interest is compounded annually.

3. The first payment is received at the end of the first year, and interest is compounded quarterly.

Reference no: EM133144153

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