SOLUTION: Find the present value of an annuity with annual payments of $1400 per year for seven years. The interest is 9% compounded annually
A. $6834.24
B $6012.26
C $2559.25
D
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Question 84979: Find the present value of an annuity with annual payments of $1400 per year for seven years. The interest is 9% compounded annually
A. $6834.24
B $6012.26
C $2559.25
D $7046.13
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Find the present value of an annuity with annual payments of $1400 per year for seven years. The interest is 9% compounded annually
A. $6834.24
B $6012.26
C $2559.25
D $7046.13
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Formula: A = R [1-(1+i)^-n]/[i]
A = 1400[1-1.09^-7]/0.09
A = 1400[0.45296576]/0.09
A = $7046.13
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Cheers,
Stan H.
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