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Mike Carlson Will Receive $12,000 a Year from the End

Question 33

Multiple Choice

Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12thyear (10 payments) . The discount rate is 10%. The present value today of this deferred annuity is:


A) $61, 450
B) $42,185
C) $55,379
D) $60,909

Correct Answer:

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