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Determine the amount of money that must be invested now​ (time 0) at 6​% nominal​ interest,...

Determine the amount of money that must be invested now​ (time 0) at 6​% nominal​ interest, compounded​ monthly, to provide an annuity of ​$7000 per year for 14 ​years, starting seven years from now. The interest rate remains constant over this entire period of time.

Solutions

Expert Solution

The amount is $44966.64

the deferred period is 6 years the PV of 14 years at the 0th year is the 7th years

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Rahul Sunny answered 2 years ago
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