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Dina Jones just learned that she received an inheritance from her grandmother. The inheritance provides for Dina to receive $5,000 per year at the end of the year for each of the next 5 years.  Assuming a discount rate of 10%, what is the value of this inheritance to Dina today?

Type of Cash Flow

Periods

Interest Rate

Factor

PV of $1	5	10%	0.6209
FV of $1	5	10%	1.6105
PV ordinary annuity	5	10%	3.7908
FV ordinary annuity	5	10%	6.1051
PV annuity due	5	10%	4.1699

▸ $30,526

▸ $20,849

▸ $18,954

▸ $15,523

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