A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment increases by $15 over what it was the previous year. Find the present value of the annuity if i- 4%. (Round your answer to the nearest cent.)
A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment increases by $15 over what it was the previous year. Find the present value of the annuity if i- 4%. (Round your answer to the nearest cent.)
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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Transcribed Image Text:A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In subsequent years each payment
increases by $15 over what it was the previous year. Find the present value of the annuity if i - 4%. (Round your answer to the
nearest cent.)
A continuously paying level annuity pays $20 each year for fifteen years. The force of interest is (4 + t)1, Find the present value of
this annuity. (Round your answer to the nearest cent.)
$31.16
Submit Answer
An amortized loan is repaid with annual payments which start at $300 at the end of the first year and increase by $35 each year
until a payment of $1,140 is made, after which they cease. If interest is 3% effective, find the amount of principal in the
fourteenth payment. (Round your answer to the nearest cent.)
$ 755.00
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