Discount rate of 12% Annuity 1: - 6 monthly payments - The 1st payment is $200,...
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Discount rate of 12% Annuity 1: - 6 monthly payments - The 1st payment is $200, starts immediately, and grow at 0.5% per month. Annuity 2: - pay $600 every quarter for 2 quarters Question - What type of annuity is those 2? - WHat is the PMT/CF, i (%) and growth rate? - What is the value of those annuity today? Discount rate of 12% Annuity 1: - 6 monthly payments - The 1st payment is $200, starts immediately, and grow at 0.5% per month. Annuity 2: - pay $600 every quarter for 2 quarters Question - What type of annuity is those 2? - WHat is the PMT/CF, i (%) and growth rate? - What is the value of those annuity today?
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SOLUTION Based on the information provided Annuity 1 is a growing annuity with payments made monthly ... View the full answer
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