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Sagot :
Answer:
$90,182.40
Explanation:
this is an annuity due since the payments are made on the first day of the year. The PVIFA due for 7% discount rate and 10 periods = 7.5152
The present value of the annuity due = annual payment x PVIFA due = $12,000 x 7.5152 = $90,182.40
The present value of an annuity due is always higher than the present value of an ordinary annuity.
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