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2.3.2 The first of a series of 30 annual payments is 1000 and each sub- sequent payment is 1% smaller than the previous one. What is the accumulated value of this series at the time of the final payment if (i) i=1%, (ii) i=5%, and (iii) i = 10%? 1-(1+7)" i-r

2.3.2 The first of a series of 30 annual payments is 1000 and each sub- sequent payment is 1% smaller than the previous one. What is the accumulated value of this series at the time of the final payment if (i) i=1%, (ii) i=5%, and (iii) i = 10%? 1-(1+7)" i-r

Essentials Of Investments
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
Problem 1PS
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Please answer the question (ii) for i=5%. Please answer using the formula that is attached. The correct answer for (ii) i=5% is 59704. Please show step by step solution.

2.3.2 The first of a series of 30 annual payments is 1000 and each sub- sequent payment is 1% smaller than the previous one. What is the accumulated value of this series at the time of the final payment if (i) i=1%, (ii) i=5%, and (iii) i = 10%? 1-(1+7)" i-r
Transcribed Image Text:2.3.2 The first of a series of 30 annual payments is 1000 and each sub- sequent payment is 1% smaller than the previous one. What is the accumulated value of this series at the time of the final payment if (i) i=1%, (ii) i=5%, and (iii) i = 10%? 1-(1+7)" i-r
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