A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the interest rate is 6.25 percent compounded monthly for the first ten years and 5.50 percent compounded monthly after that, what is the PV of the annuity?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the interest rate is 6.25 percent compounded monthly for the first ten years and 5.50 percent compounded monthly after that, what is the PV of the annuity? 

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