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4) You receive a 30 year annuity that pays $1,250 at the end of each month for the first year, and then this monthly payment increases by 2% each year (so that the monthly payments in the second year are $1, 275, the monthly payments in the third year are $1, 300.50, etc.). Immediately after receiving cach monthly payment, you reinvest the payment into an account carning an interest rate i(12) the accumulated value of the payments after 30 years. -.06. Find

4) You receive a 30 year annuity that pays $1,250 at the end of each month for the first year, and then this monthly payment increases by 2% each year (so that the monthly payments in the second year are $1, 275, the monthly payments in the third year are $1, 300.50, etc.). Immediately after receiving cach monthly payment, you reinvest the payment into an account carning an interest rate i(12) the accumulated value of the payments after 30 years. -.06. Find

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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4) You receive a 30 year annuity that pays $1, 250 at the end of each month for the first year, and then this monthly payment increases by 2% each year (so that the monthly payments in the second year are $1, 275, the monthly payments in the third year are $1, 300.50, etc.). Immediately after receiving each monthly payment, you reinvest the payment into an account carning an interest rate i12) = .06. Find the accumulated value of the payments after 30 years.
Transcribed Image Text:4) You receive a 30 year annuity that pays $1, 250 at the end of each month for the first year, and then this monthly payment increases by 2% each year (so that the monthly payments in the second year are $1, 275, the monthly payments in the third year are $1, 300.50, etc.). Immediately after receiving each monthly payment, you reinvest the payment into an account carning an interest rate i12) = .06. Find the accumulated value of the payments after 30 years.
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