You are comparing two annuities with equal present values, Finance Basics

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You are comparing two annuities with equal present values

Question: You are comparing two annuities with equal present values. The applicable discount rate is 7.25 percent. One annuity pays $2,500 on the first day of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year?

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Finance Basics: You are comparing two annuities with equal present values

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