The first payment is received one year from now

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1. What is the present value of $400 paid each year forever, assuming a discount rate of 11% and the first payment is received one year from now? Please round your answer to the nearest cent.

2. You deposit $1,900 in a bank account that pays 8% stated annual interest compounded monthly. What is the value of your investment at the end of 6 years? Please round your answer to the nearest cent.

3. What is the present value of $500 paid each year forever, assuming a discount rate of 8% and the first payment is received one year from now? Please round your answer to the nearest cent.

Reference no: EM131860700

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