IB skill practice

Use annuity present value

Calculate the present value of a regular payment stream.

Paper 1, Paper 2 5 marks Difficulty 3

Use annuity present value - exam scenario

Confirm the modelling meaning first. An environment group receives 1100 at the end of each year for 5 years. At annual rate 4%, find the present value of the annuity. Enter the requested value and choose the interpretation that matches the result.

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