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All we should do now is fix the equation for P, and with somewhat algebraic manipulation, we will have the formulation to the present value of an annuity:
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Suppose Nick was establishing an fascination bearing account at his regional lender though his Pal Pete was creating an annuity together with his stock broker. Nick's account will be governed Going Here by the 1st equation, while Pete's account might be governed by the next.
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