What is the present value of the payments

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1) An investment offers $5,450 per year for 15 years, with the first payment occurring one year from now. If the required return is 8 percent, what is the value of the investment? USE THE TABLE AND SHOW ME THE VALUE YOU GET FROM THE TABLE.

2) IF the same investment lasts 40 years what is the value of the investment? USE THE RULE AND SHOW YOUR WORKOUT.

3) Suppose you are going to receive $13,500 per year for five years, with the first payment to be received today. The appropriate interest rate is 7.5%. What is the present value of the payments?

Reference no: EM132607356

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