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What is the present value of the annuity

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Reference no: EM132726684

Problem - Assume that you are nearing graduation and have applied for a job with a local bank. The bank's evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions.

Required -

(1) What is the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10%?

(2) What is the present value of the annuity?

(3) What would the future and present values be if the annuity were an annuity due?

Reference no: EM132726684

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