Micheline wishes to purchase a 25-year annuity providing payments of $1000 per month for the first 15

Question:

Micheline wishes to purchase a 25-year providing payments of $1000 per month for the first 15 years and $1500 per month for the remaining 10 years. Sovereign Insurance Co. has quoted her a rate of return of 5% compounded annually for such an How much will it cost Micheline to purchase the from Sovereign?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...