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[DOC File]CHAPTER I - UCSB's Department of Economics
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14. The basis for converting the present value of an ordinary annuity table to the present value of an annuity due table involves multiplying the present value of an ordinary annuity factor by one plus the interest rate. Questions Chapter 6 (Continued) 15. Present value = present value of an ordinary annuity of $25,000 for 20 periods at? percent.
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[DOC File]ww2.justanswer.com
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Mar 08, 2011 · b) What is the present value of $2500 to be received at the beginning of each of 30 periods, discounted at 10% compound interest? PV=Amount per period*PV of Annuity Due Factor (10%, 30 Periods) = 2500*10.36961 = $25924.03
present value of annuity factor

[DOC File]ANSWERS TO REVIEW QUESTIONS
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The PVIFA factors for an ordinary annuity can be converted for use in calculating an annuity due by multiplying the PVIFAi%,n by 1 + i. 4-12. A perpetuity is an infinite-lived annuity. The factor for finding the present value of a perpetuity can be found by dividing the discount rate into 1.0.
pv annuity factor formula

[DOC File]WCNet.org
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3) Table 2 is also known as an “Ordinary Annuity” or “Annuity in Arrears” table because the cash flows are deemed to take place at the end of the period. For cash flows that take place at the beginning of the period, you would; a) subtract one period, and b) add 1.0 to the factor found on the table above.
pv factor of annuity

Annuity due pv factor table