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What is the present value of an ordinary annuity

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Reference no: EM131627729

Question: 1. What is the present value of an ordinary annuity with an annual payout of $20,000 at 7% annual interest for 20 years?

2. What lump sum must be set aside today at 8% annual interest compounded quarterly to provide quarterly payments of $7,000 to Demetrius Ball for the next ten years?

Reference no: EM131627729

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