What is present value and future value

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Reference no: EM131968645

1. Consider a 10-year annuity of $9000 per year. Payments are made at the end of each year. The discount rate is 7 percent.

a. What is its present value?

b. What is its present value if interest rates fall to 5 percent?

c. What is its future value at the end of 10 years, assuming reinvestment of the payments and r=8%?

Reference no: EM131968645

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