Based on the table, what is the value of an annual income flow of $1,300 each year over the next...
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Using the formula: Present value _ S/(1_i)n where ‘‘i’’ is the interest rate in percentage, ‘‘n’’ is the number of periods, and ‘‘S’’ is the starting amount, the following table is produced:

Periods

10%

12%

14%

1

0.909

0.893

0.877

2

0.826

0.797

0.769

3

0.751

0.712

0.675

4

0.683

0.636

0.592

5

0.621

0.597

0.519

Based on the table, what is the value of an annual income flow of $1,300 each year over the next three years at 12%?

a. $3122.60

b. $3900.00

c. $3497.00

d. 36%

Dec 28 2020 06:54 PM

1 Approved Answer

JItender B
answered on
December 30, 2020

5
Ratings,
(17 Votes)

Calculation of annual income flow of $1300 each year over the three years at 10, 12, 14% discount rates -

## 1 Approved Answer

December 30, 2020Calculation of annual income flow of $1300 each year over the three years at 10, 12, 14% discount rates -

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