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Business, 15.09.2021 01:00 Avibx8x8

The present value of an annuity (a yearly sum of money) may be computed matlab from the formula (25 points) n n P = (A/ i)[(1+ i) βˆ’1]/(1+ i) where A is the annuity (in $/year), i is the nominal yearly interest rate (in decimal form), n is the number of years over which the annuity is paid and P is the present value ($). Example computation: If i = 0.15 (15%), A = $100/year and n = 10 years then P = $501.88. If you won the $1,000,000 State Lottery and the Lottery offered you the choice of $500,000 today or $50,000/year for 20 years, which would you take? You can assume an inflation (interest) rate of 5%.

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The present value of an annuity (a yearly sum of money) may be computed matlab from the formula (25...
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