Calculate the present value of this annuity.

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
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Oliver makes a series of annual deposits into an account. His first deposit is 750
and is made at the end of year 1. Each subsequent annual deposit increases by
3.5% and the amount of his final deposit is 1,492.34. This account credits an
annual effective rate of interest of 5%.
4.
Calculate the present value of this annuity.
Transcribed Image Text:Oliver makes a series of annual deposits into an account. His first deposit is 750 and is made at the end of year 1. Each subsequent annual deposit increases by 3.5% and the amount of his final deposit is 1,492.34. This account credits an annual effective rate of interest of 5%. 4. Calculate the present value of this annuity.
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