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What Is the Present Value of an Annual Annuity Payment

Question 48

Multiple Choice

What is the present value of an annual annuity payment of $7,000 made for 12 years with a required return of 5% per year with the first payment starting today?


A) $65,145
B) $ 3,898
C) $62,043
D) $11,200

Correct Answer:

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