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Suppose that 5 years from now you will receive $10,000 at the end of every year...

Suppose that 5 years from now you will receive $10,000 at the end of every year for 5 years. What is the present value of this annuity if the opportunity cost rate is 5%?

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Answer #1

Solution :

The present value of the annuity if the opportunity cost rate is 5 % is = $ 33,922.58

Please find the attached screenshot of the excel sheet containing the detailed calculation for the above solution.

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