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Find the present value of an annuity with annual payments of $1,000.00 compounded at the end of each year for 9 years after being deferred for 4 years, if money is worth 6.5%, compounded annual. The present value would be $_______
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3.75
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PVA = Annuity x [ / r] = $1,000 x [ / 0. 065] = $1,000 x [0. 4326 / 0. 065] = $1,000 x 6. 6561 = $6,656. 10 PV = PVA / (1 + r)^n = $6,656. 10 / 1. 065^4 = $6,656. 10 / 1. 2865 = $5,173.94
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