(Calculating the present value of an annuity due) What will be the present value of annuity due of £800 a year for 12 years, discounted back to the present at an annua rate of 5 percent? What will be the present value of this annuity if the discount rate

(Calculating the present value of an annuity due) What will be the present value of annuity due of £800 a year for 12 years, discounted back to the present at an annua rate of 5 percent? What will be the present value of this annuity if the discount rate

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

. (Calculating the present value of an annulty due) What will be the present value of an
annuity due of £800 a year for 12 years, discounted back to the present at an annual
rate of 5 percent? What will be the present value of this annuity if the discount rate is
8 percent?

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