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QUESTION

Corp finance annuity

If your company purchases an annuity that will pay $50,000 a year for 10 years at an 11% discount rate what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?

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ANSWER

Tutor has posted answer for $11.00. See answer's preview

$11.00

** ******* Due=P+P ((1+r)^(n-1)-1/(r(1+r)^(n *********************************** (111)^(10-1))=50000+50000 *************** ******************* ********************************************************

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