Sample PSAB Notes to Financial Statements
The present value of your payments to the bank equals: $100 ( annuity factor(6%, 10 years) = $736.01. The present value of your receipts is the value of a $100 perpetuity deferred for 10 years: This is a good deal if you can earn 6% on your other investments. If you live forever, you will receive a $100 perpetuity that has present value equal ... ................
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