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What is the present value of annuity

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A 10-year annuity pays $900 per year, with payments made at the end of each year. The first $900 will be paid 5 years from now. If the interest rate is 8% and interest is compounded quarterly, what is the present value of this annuity? Note: Adjust the interest rate. The effective annual yield (EAY) is the appropriate discount rate because it captures the effect of compounding periods.

Reference no: EM132616248

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