What is the present value of these two payments

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1. Big Brothers, Inc. borrows $139104 from the bank at 12.12% per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 6 years. How much will each annual payment be?

2. Walter Walker expects to receive $2000 at the end of each year for the next two years. Assuming an annual compound interest rate of 4%, what is the present value of these two payments?

Reference no: EM132014621

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