An annuity pays $1 at the end every odd year and $2 at the end of...

An annuity pays $1 at the end every odd year and $2 at the end of each even year (not counting year 0) for 10 years. If the effective annual rate is 6%, what is the present value of the annuity?

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Answer

Present Value
Year	Project	PVF @6%	Present Value
Year 1	1.00	0.94340	0.94
2	2.00	0.89000	1.78
3	1.00	0.83962	0.84
4	2.00	0.79209	1.58
5	1.00	0.74726	0.75
6	2.00	0.70496	1.41
7	1.00	0.66506	0.67
8	2.00	0.62741	1.25
9	1.00	0.59190	0.59
10	2.00	0.55839	1.12
Present Value			10.93

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