Calculate the present value of a 30-year annuity with annual payments which pays an initial payment of $1,416.16 at the end of 10 years. Each subsequent annual payment is 4% larger than the previous payment. Assume the effective annual interest rate is 0.039. Give your answer to the nearest dollar.
Calculate the present value of a 30-year annuity with annual payments which pays an initial payment of $1,416.16 at the end of 10 years. Each subsequent annual payment is 4% larger than the previous payment. Assume the effective annual interest rate is 0.039. Give your answer to the nearest dollar.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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