What is the value of the annuity today

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Problem 1: You are scheduled to receive annual payments of $5,000 for each of the next 7 years. The discount rate is 12 percent. What is the value of these payments?

Problem 2: You buy an annuity that will pay you $24,000 a year for 20 years. The payments are paid at the end of each year. What is the value of this annuity today if the discount rate is 8.5 percent?

Reference no: EM132776855

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