Accounting for Lawyers
The factor for a 20-period annuity at 2% is 16.35143. The difference is 27.35548 – 16.35143 = 11.00405. This is the PV factor for the annuity in years 6-10. Thus, the PV of this annuity is 11.00405 x $6 = $66.02. Payment # 2: From Table III, the PV factor for 10 years and a discount rate of 8% is .46319. ................
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