Determine the present value on specific date


Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2009, of a five-period annual annuity of $5,000 under each of the following situations:

1. The first payment is received on December 31, 2010, and interest is compounded annually.

2. The first payment is received on December 31, 2009, and interest is compounded annually.

3. The first payment is received on December 31, 2010, interest is compounded quarterly.

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Accounting Basics: Determine the present value on specific date
Reference No:- TGS0528868

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