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An annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 6%? OA. $12,512 OB. $7,507 OC. $17,517 OD. $15,014

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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Question

An annuity is set up that will pay $1,700 per year for ten years. What is the present value (PV) of this annuity given that
the discount rate is 6%?
OA. $12,512
OB. $7,507
OC. $17,517
OD. $15,014
4

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