3) Find the present value of a 20 year annuity due where payments are $1,000 at the beginning of the first year, third year, etc. and payments are $1,500 at the beginning of the second year, fourth year, etc. Here effective annual interest is 5% Hint: Draw a time diagram!!!

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To solve this problem we need to find the present value of the two different payment streams separat... View the full answer